Tech Surge and Geopolitical Optimism Drive S&P 500 and Nasdaq to Record Highs

The S&P 500 and Nasdaq Composite closed at record highs on Friday, propelled by a resurgence in semiconductor equities and optimism surrounding diplomatic efforts to resolve the conflict between the U.S. and Iran. While the Dow Jones Industrial Average saw a slight decline, the broader market trend remained strongly bullish, with the S&P 500 rising 0.8% and the Nasdaq climbing more than 1.6%. The rally was centered on the chip sector, where the Philadelphia Semiconductor Index extended its winning streak to 18 consecutive sessions. This momentum reflects a broader investor appetite for AI-driven hardware and a surprising turnaround in legacy chip manufacturing. Intel shares surged over 23% to hit a record high, marking a 280% increase since CEO Lip-Bu Tan assumed leadership in March of last year. Other sector peers followed suit, with AMD and Arm both climbing approximately 14%. Nvidia rose more than 4% to a record close, bringing its market capitalization closer to the $5 trillion milestone. Beyond the tech rally, market attention is now pivoting toward the Federal Reserve's upcoming meeting. Investors are seeking guidance on future interest rate cuts and the transition of central bank leadership. The path for Kevin Warsh, President Trump's nominee for Fed Chair, was cleared following the Justice Department's decision to close its investigation into current Chair Jerome Powell.