S&P 500 and Nasdaq Hit Record Highs Amid Chipmaker Rally

The S&P 500 and Nasdaq Composite closed at record highs on Monday, driven by strong performances from several chipmakers. The S&P 500 rose 0.1%, marking its third consecutive all-time high, while the Nasdaq increased by 0.3%, extending its winning streak to five sessions. The Dow Jones Industrial Average, however, dipped 0.1%.

Chipmakers that contributed to Monday’s gains included Intel (INTC), Broadcom (AVGO), Marvell Technology (MRVL), Advanced Micro Devices (AMD), and Super Micro Computer (SMCI).

The recent stock rally has been fueled by optimism that the Federal Reserve may cut its benchmark interest rate. Investors are looking for more clues on the Fed’s plans, especially after Friday’s jobs data bolstered expectations of a rate cut as early as September.

Fed Chair Jerome Powell’s two-day testimony before Congressional committees, starting Tuesday, is eagerly anticipated. Additionally, the first readings on June inflation later in the week will provide insights into whether price pressures are easing. Fed officials have emphasised the need for more evidence of controlled inflation before considering rate cuts.

The yield on 10-year Treasurys rose slightly to around 4.28%, after declining last week as investors speculated on potential interest rate cuts.

This surge in chipmaker stocks and the anticipation of a possible Fed rate cut have propelled the S&P 500 and Nasdaq to new heights, reflecting investor confidence in the market’s direction.

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