The S&P 500 surpassed the 7,800 mark for the first time ever as investor sentiment remained positive, despite lingering indicators of economic instability in the United States.
Both the S&P 500 and the Nasdaq finished at record highs, fueled by a rally in AI chip manufacturers and a decline in US Treasury yields.
Market participants expressed optimism following recent updates from chipmakers such as Broadcom, Advanced Micro Devices, and Marvell Technology, all of which signaled expansion in the sector for AI-powering hardware.
Wall Street has also become increasingly confident that the Federal Reserve will maintain current bond market, generally regarded as a secure investment avenue, has experienced significant turbulence in recent weeks. US bond yields—the returns investors earn upon maturity—hit recent peaks due to anxieties surrounding elevated inflation and interest rates. The yield on 10-year US Treasury bonds climbed to 5.349% on Monday, marking its highest level since April 2022, before retreating on Tuesday.
For American households, rising energy costs remain a significant burden. Although gasoline prices have declined slightly over the past week, they remain approximately $1.20 per gallon higher than in previous periods.
