"The S&P 500 has hit milestone territory, surging past the psychologically important 7,000 mark for the first time. Tech is once again setting the tone as investors bet on the AI boom continuing, fuelling the prospects for listed companies. Sentiment has been boosted by a raft of results, showing demand for semi-conductors is racing ahead. Dutch chip equipment maker ASML reported record fourth quarter orders and boosted its outlook for the year."
"Seagate Technologies, the data storage provider, also unwrapped results which exceeded expectations. Revenue rose 22% compared to a year ago, but guidance for the current quarter also beat expectations, showing huge demand for cloud and edge computing environments, crucial for new artificial intelligence tools. Results like these are helping to put worries to bed about the AI boom faltering any time soon. It's helped power up the share price of Intel, Micron Technology and other chip stocks, with giant Nvidia joining the party and heading higher."
The S&P 500 rose past the 7,000 mark for the first time, driven by technology leadership. Strong semiconductor and data-storage results boosted investor sentiment, with ASML reporting record orders and raising its outlook. Seagate posted 22% revenue growth year-on-year and issued stronger-than-expected guidance, signaling robust cloud and edge computing demand for AI tools. Chip stocks including Intel, Micron and Nvidia rallied as investors bet on continued AI-driven demand. The rally supports wealth perceptions and spending among invested Americans, while a K-shaped recovery leaves poorer citizens’ confidence strained. The Federal Reserve is expected to hold rates now, with markets pricing cuts later as the labour market cools and core inflation softens.
Read at London Business News | Londonlovesbusiness.com
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