S&P back in bull market territory with record close
The S&P 500 posted a record high close on Friday for the first time in two years, fueled by a rally in chipmakers and other heavyweight technology stocks on optimism around artificial intelligence. The benchmark's close confirmed that the S&P 500 has been in a bull market since it closed at its low on October 12, 2022, according to one measure which also puts that date as the end of a bear market. On Friday, the S&P 500 jumped 1.23 percent to end the session at 4,840 points. "It really is an encouraging day in terms of the action, and 4,800 certainly has been a key level which has been difficult to surmount. So if we continue to move in this direction, that's going to be a very positive sentiment sign," said Lisa Erickson, head of public markets at U.S. Bank Wealth Management in Minneapolis. Nvidia climbed 4.2 percent and Advanced Micro Devices rallied over 7 percent after server maker Super Micro Computer lifted its second-quarter profit forecast, sending its shares soaring 36 percent. Microsoft and Apple, the world's two most valuable companies, both rose more than 1 percent. Chipmaker stocks have gained since TSMC, the world's largest contract chipmaker, on Wednesday said it saw booming demand for high-end chips used in AI. The Nasdaq jumped 1.70 percent to 15,311 points, while Dow Jones Industrial Average rose 1.05 percent to 37,864 points. Stock investors were also cheered on Friday by the University of Michigan's preliminary survey showing consumer sentiment improved in January to its highest level since the summer of 2021. “Records are made to be broken and the broadening of market action in the past few months is reassuring. The resiliency of the US economy in general, and most businesses in particular, has been notable,” said Carol Schleif, Chief Investment Officer at chief investment officer at BMO's family office in Minneapolis. (Reuters)