Market Highlights: S&P 500 Hits 7,000

On Wednesday, the S&P 500 made headlines by reaching a new milestone of 7,000 for the first time, just ahead of the Federal Reserve’s interest rate decision and significant earnings reports from major tech companies.

The index ended up 0.1%, after peaking at an intraday high of 7,002.28 earlier in the day. Meanwhile, the Nasdaq Composite saw a slight increase of 0.2%, while the Dow Jones Industrial Average hovered near unchanged.

One major factor propelling the market was a surge in semiconductor stocks, bolstered by optimistic earnings results. Notably, Seagate Technology’s shares soared over 17% after their CEO highlighted strong demand tied to artificial intelligence data storage, as the company beat analysts’ expectations for both profit and revenue. Additionally, key semiconductor equipment manufacturers like ASML reported record orders and upbeat forecasts for 2026 due to the AI boom.

In other news, China has given the green light for companies like ByteDance, Alibaba, and Tencent to purchase Nvidia’s H200 AI chips, prompting Nvidia’s stock to rise by more than 1%. Micron Technology and Taiwan Semiconductor Manufacturing also reported profitable quarters.

Investors are keeping a close eye on the U.S. dollar, which fell over 1% on Tuesday—the worst drop since April last year—bringing its annual decline to over 10%. This decline seemed to contradict President Trump’s statement regarding the currency’s health, though the dollar did see a modest rebound on Wednesday.

Later in the day, the Federal Reserve is expected to maintain its benchmark interest rate within the current target range of 3.5% to 3.75%. However, traders will be searching for cues regarding any potential future adjustments to monetary policy. According to federal funds futures contracts, a rate cut of up to 0.25% may be anticipated by the end of 2026.

“The outlook for the U.S. economy continues to be optimistic, with growth persisting and the labor market showing signs of stabilizing, albeit somewhat soft,” noted Christian Hantel, portfolio manager at Vontobel Asset Management. He added, “Inflation is still above the Fed’s target, which makes immediate rate cuts seem unwarranted.” Hantel suggests that investors should keep an eye on the Federal Open Market Committee’s meetings coming up in March and June for possible policy adjustments.

Apart from these developments, big tech companies are reporting robust earnings. Microsoft, Meta Platforms, and Tesla are set to unveil their quarterly results after the market closes on Wednesday, while Apple is expected to announce its results on Thursday.

In a positive turn for another major player, Starbucks shares climbed over 3% after the coffee chain reported its first increase in customer traffic in two years. While first-quarter sales exceeded expectations, profits didn’t quite meet forecasts.