Chipmakers push S&P 500 to its first record high close since 2022

The world’s two most valuable companies, Microsoft and Apple, both rose more than 1%
A representational image. — Pixabay
A representational image. — Pixabay

For the first time in two years, S&P Global posted a record-high closing as positive development around artificial intelligence (AI) fueled a rally in chipmakers and heavyweight technology stocks.

Reuters, citing one measure which also puts that date as the end of a bear market, reported that the benchmark’s close confirmed that the S&P 500 has been in a bull market since it closed at its low on October 12, 2022.

The S&P — stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States — tumbled 25% in a selloff between its record high close of 4,796.56 on January 3, 2022, and its low in October 2022.

On Friday, the S&P 500 jumped 1.23% to end the session at 4,839.81 points.

Head of public markets at US Bank Wealth Management in Minneapolis, Lisa Erickson, said: "It really is an encouraging day in terms of the action, and 4,800 certainly has been a key level which has been difficult to surmount. So if we continue to move in this direction, that's going to be a very positive sentiment sign.”

Nvidia climbed 4.2% and Advanced Micro Devices rallied over 7% after server maker Super Micro Computer lifted its second-quarter profit forecast, sending its shares soaring 36%.

According to LSEG data, investors exchanged $31 billion worth of Nvidia's stock and $23 billion worth of AMD shares, a higher turnover than any other company on Wall Street.

The Philadelphia SE Semiconductor index soared 4% to a record high, while the S&P 500 information technology sector index jumped more than 2% to record highs.

The world’s two most valuable companies, Microsoft and Apple, both rose more than 1%.

Chipmaker stocks have gained since Taiwan Semiconductor Manufacturing Company, the world's largest contract chipmaker, on Wednesday said it saw booming demand for high-end chips used in AI.

The Nasdaq jumped 1.70% to 15,310.97 points, while the Dow Jones Industrial Average rose 1.05% to 37,863.80 points.