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S&P 500 Closes Within Striking Distance of Record: Markets Wrap – Yahoo Finance

(Bloomberg) — A rally in big tech stocks fueled by optimism about artificial intelligence and solid profits from big companies has pushed stocks to the brink of all-time highs.

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Stocks have risen further this year, with the S&P 500 at one point exceeding 6,100. Netflix Inc. soared about 10% on the back of its biggest subscriber increase in history. Nvidia Inc. led the rally in mega-cap stocks, while Oracle Corp. soared more than 6.5% on its $100 billion joint venture with SoftBank Group Corp. and OpenAI. The initiative, announced by President Donald Trump, further boosts the outlook for the AI ​​enthusiasts that have supported the bull market. .

Steve Sosnick of Interactive Brokers said: “The promise of a huge pool of capital for AI investing, whether fully funded or not, will once again encourage investors to invest in artificial intelligence and everything related to it. It's enough to get people excited about things.”

Recently, most of the S&P 500 constituents have actually fallen, despite trying to expand the market beyond a handful of tech mega-cap stocks. The narrow range is a major concern for investors, especially those worried about soaring valuations and frothy AI stocks.

JPMorgan Chase & Co. chief Jamie Dimon said there are signs the U.S. stock market is overheating.

“Asset prices are going up in some ways,” Dimon told CNBC. “You need pretty good results to justify that price.”

The S&P 500 rose 0.6%. The Nasdaq 100 rose 1.3%. The Dow Jones Industrial Average rose 0.3%. Bloomberg's “Magnificent Seven'' mega-cap stocks rose 1.3%. The Russell 2000 fell 0.6%. Travelers Company and Procter & Gamble rose after strong financial results.

The yield on the 10-year U.S. Treasury rose 2 basis points to 4.6%. The Bloomberg Dollar Spot Index was shaken.

“Markets are reacting positively to the first wave of Trump policy, with investors breathing a sigh of relief at tariff announcements and the early stages of earnings season, but showing enthusiasm reminiscent of pre-election times,” Mark Hackett said. ” Nationwide. “After a volatile earnings season in recent quarters, a new all-time high would energize the bulls,” he concluded.

For Miller Tabak's Matt Maley, if this year's earnings season is a good one, it could be a rally with some legs. But simply “exceeding expectations” is not enough to drive significant further progress.

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