Tech Surge Propels S&P 500 and Nasdaq to Record Highs Amid Global Tensions
The S&P 500 and Nasdaq futures hit record highs on Thursday, driven by Nvidia's stock surge following reports that the U.S. has allowed Chinese firms to purchase its AI chip. The tech sector, especially chipmakers, has been on a steady rise, propelling U.S. stocks to new peaks despite concerns over the Middle East conflict and rising inflation due to oil price spikes.
Chinese President Xi Jinping and President Donald Trump discussed trade progress at a high-stakes summit, but tensions over Taiwan could strain relations. Trump is also seeking Beijing's assistance in resolving the Iran conflict, which has led to global energy price hikes. Dow E-minis were up 0.43%, S&P 500 E-minis rose by 0.15%, and Nasdaq 100 E-minis increased by 0.1%.
The S&P 500 and Nasdaq achieved record closes on Wednesday, buoyed by AI-related tech stocks, overshadowing higher-than-expected producer prices. Strong consumer and producer prices data this week suggest the Federal Reserve may maintain a tight monetary policy for longer, with a 28% chance of a rate hike by year-end, up from 20.7% last week.
Investors are awaiting April retail sales data and weekly jobless claims to gauge the impact of rising gasoline and energy costs on consumer spending and the labor market. Cisco's stock surged by 16.5% after announcing job cuts and raising its revenue forecast following increased hyperscaler orders.