The S&P 500 rose 0.6% to its first record high in two months, poised for a fourth consecutive advance. Bullish momentum is driven by resilient corporate profits and a pullback in oil prices, with investors looking past lingering inflation concerns. The Nasdaq 100 also gained 0.6%, supported by strong earnings enthusiasm and a roughly 14% year-to-date advance in the broad index.
Strategists note that as long as AI return-on-investment data remains positive, downside risk remains limited. Third-quarter tech earnings are expected to jump 66%, fueling more than 24% overall S&P 500 EPS growth. Nvidia shares surged 28% year-to-date, pushing the company toward a $6 trillion market cap and making it the single biggest contributor to the index's rise.
Advanced Micro Devices CEO Lisa Su reinforced AI chip demand outlook, stating it will remain "very high" for several years. Meanwhile, Paramount Skydance Corp. closed its $110 billion acquisition of Warner Bros. Discovery Inc., completing one of the biggest media mergers ever after a contentious battle with Netflix.
OpenAI is also reportedly in talks with UAE investment funds regarding a $30 billion financing round for ChatGPT.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing