Tech Surge Propels S&P 500 and Nasdaq to Record Highs as Intel Rallies

The S&P 500 and Nasdaq Composite reached new all-time highs on Thursday, fueled by a powerful rally in semiconductor and artificial intelligence stocks. The S&P 500 climbed 0.80% to close at 7,165.08, while the Nasdaq Composite jumped 1.63% to 24,836.60. The primary catalyst was a standout quarterly report from Intel, which saw its shares soar 23%. This breakout performance reignited confidence in the chipmaker's leadership and provided a lift to the broader semiconductor industry, evidenced by the Philadelphia Semiconductor Index's 4.32% gain and its 18-day winning streak. Mega-cap AI leaders further solidified their market dominance. Nvidia's market capitalization reclaimed the $5 trillion threshold in late trading, joining Microsoft and Meta Platforms in extending their gains. Conversely, the Dow Jones Industrial Average faced pressure on cyclical stocks, slipping 0.16% to end at 49,230.71. Market sentiment was further bolstered by the Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell. This development is expected to reduce uncertainty surrounding Fed independence and facilitate the potential appointment of Kevin Warsh. Despite the optimism, the Bank of England issued a warning. Deputy Governor Sarah Breeden cautioned that tech valuations have become stretched, suggesting that stock prices could face a correction. Investors are now looking toward next week's major tech earnings to determine if the current momentum is sustainable.