The S&P 500 has surged to a new record high, surpassing 7400 for the first time, as a relentless rally in semiconductor stocks and the world’s three largest mega-cap technology firms gathered significant momentum. The benchmark closed 0.8 per cent higher at 7398.93, after peaking earlier at 7401.50. This marks the third record high reset this week, with the index having added more than A$14 trillion in market capitalisation in the past 29 trading days alone. A year ago, the index stood at 5600, illustrating its rapid ascent.
Analysts largely attribute this robust performance to fundamental strengths. Fundstrat Global’s Tom Lee highlighted the “positive risk/reward” in the S&P 500, noting that leading stocks possess strong near-term visibility and produce scarce goods, particularly in the semiconductor and AI-exposed sectors. Goldman Sachs’ Brian Garrett affirmed the rally’s “solid foundation,” citing a cooled geopolitical environment, a healthy economy, and better-than-expected earnings. Market veteran Ed Yardeni pointed to a 19-quarter high in S&P 500 first-quarter earnings beats, further fuelling optimism.
The technology sector, in particular, demonstrated exceptional strength. The Nasdaq Composite jumped 1.7 per cent, while the Philadelphia semiconductor index soared 5.5 per cent, bringing its year-to-date gain to over 64 per cent. Major advancers included Micron Technology, up 15.5 per cent, Intel, rising 13.9 per cent following reports of a tentative chip supply agreement with Apple, and AMD, climbing 11.4 per cent. Nvidia, Alphabet, and Apple – the world’s three most valuable publicly traded companies – each hit new record highs, collectively topping A$21 trillion in market value. Jeff Buchbinder of LPL Financial noted that the “Magnificent Seven” delivered strong performances, boosting confidence in the artificial intelligence theme. The latest US non-farm payrolls report, showing 115,000 jobs added and a steady 4.3 per cent jobless rate, also reinforced investor confidence.
