S&P 500 notches record high as rate-hike worries ease

The S&P 500 reached a record high on Thursday, closing at 7,798.99 points, after concerns about interest rate hikes eased. This boost was driven by strong performances in technology stocks such as Sandisk and Micron Technology, which surged 13.7% and 4.2%, respectively. Microsoft and Meta Platforms also added nearly 1% and 2.8%, respectively, while CoreWeave saw a 1.3% dip.

The rally came after strong earnings forecasts from companies like Microsoft and Amazon reduced worries about massive spending on AI data centers. Seven of the 11 S&P 500 sector indexes rose, with communication services leading the charge at 1.56% and real estate up 1.34%. The S&P 500 has seen a 14% increase in 2026, and the Nasdaq a 15% gain.

Despite these gains, some companies like Cisco Systems fell 8.4%, as investor expectations weren't met with their revenue forecasts. The probability of the Fed keeping interest rates unchanged at their September meeting is at 63%, according to CME's FedWatch tool. Brent crude oil prices fell about 2% to $87.07 a barrel. Meanwhile, Netflix rose 5.4% after Bill Ackman's Pershing Square increased its stake in the streamer, and Dell Technologies and HP both climbed after Lenovo's better-than-expected earnings.