S&P 500 ends near record high as AI optimism lifts chipmakers

economictimes.indiatimes.com:

AI optimism drove gains in Nvidia and other chipmakers.

U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSMC) soared nearly 10% after the world's largest contract semiconductor maker projected 2024 revenue growth of more than 20% on booming demand for high-end chips used in artificial-intelligence applications.

Heavyweight chipmaker Nvidia rose 1.9% to a record high, and it was the most-traded company on Wall Street, with almost $28 billion worth of shares exchanged. Rival Advanced Micro Devices rose 1.6% and also notched a record high.

Broadcom, Qualcomm and Marvell Technology gained more than 3% each.

The Philadelphia SE semiconductor index rallied 3.4% and approached its December 2023 record high.

«AI has caused this industry to have a 'rip your face off' rally, and I don't think it's stopping anytime soon,» said Jake Dollarhide, CEO of Longbow Asset Management.

Apple jumped 3.3% after BofA Global Research upgraded the iPhone maker's stock to «buy» from «neutral.» That helped the S&P 500 information technology index rise 2% and hit a record high.

The S&P 500 climbed 0.88% to end the session at 4,780.94 points. The benchmark is down just 0.3% from its record-high close in January 2022.

The Nasdaq gained 1.35% to 15,055.65 points, while the Dow Jones Industrial Average rose 0.54% to 37,468.61 points.

Data showed the number of Americans filing new claims for unemployment benefits fell last week to a late-2022 low, suggesting solid job growth in January.

Wall Street has wavered in recent sessions as investors became less sure the Federal Reserve will begin cutting interest rates in March.

The S&P 500 lost ground on Tuesday and Wednesday following strong December retail sales data and after policymakers