Chart: A look at the S&P 500's remarkable and defiant trip to a new record
The S&P 500 returned to an intraday record Tuesday as tech gains, easing oil prices and Treasury yields helped stocks overcome months of market shocks.
TL;DR
- The S&P 500 achieved a new intraday record high and closed above 7,800 for the first time.
- The rally is attributed to tech stocks, particularly those involved in AI, overcoming oil shocks and rising borrowing costs.
- The 'Magnificent 7' stocks (Nvidia, Alphabet, Amazon, Apple, Meta, Microsoft, Tesla) constitute over 34% of the S&P 500's market capitalization and heavily influence its direction.
- Investor confidence is bolstered by strong corporate profits and the U.S. stock market being perceived as the best place for investments compared to other locations.
- Concerns remain about market breadth potentially persisting if inflation doesn't ease or if the Federal Reserve lacks clear signals of achieving its mandate.