Tech Surge Propels S&P 500 and Nasdaq to Record Highs Amid Economic Jockeying
The S&P 500 and Nasdaq reached new record highs amid gains driven by Nvidia and Cisco. Economic data, U.S.-China trade talks, and Middle East tensions played significant roles as investors monitored inflation and job markets. Despite retail sales growth, inflation remains a challenge affecting spending and interest rate predictions.
In a dramatic trading day, the S&P 500 and Nasdaq recorded fresh intraday highs, bolstered by a 3% spike in Nvidia's shares following news of U.S. clearance for Chinese firms to purchase its powerful AI chips. Cisco's 14.7% surge to a record high further fueled the market gains.
The rally has been underpinned by recent strength in technology stocks, even as inflation and geopolitical concerns over Iran loom large. Notably, technology has been the top-performing sector, climbing 1% as investors brace for potentially higher inflation readings and a sustained hawkish stance by the Federal Reserve.
President Trump's meeting with Chinese President Xi Jinping at a U.S.-China summit has sparked hope for progress in trade talks, although warnings about tensions over Taiwan persist. Meanwhile, an uptick in U.S. consumer prices and steady jobless claims point to a stable economy, keeping markets buoyant despite underlying uncertainties.
(With inputs from agencies.)
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