📷 Image Credits: Moneycontrol
Technology shares led the S&P 500 and Nasdaq to score record closing highs on Monday, fueled by enthusiasm over artificial intelligence. The week ahead is set to provide a series of key economic data releases and speeches by Federal Reserve officials, which could impact market sentiment.
Megacaps Apple and Microsoft staged a strong rebound from early losses to end the day 1.97% and 1.31% higher, respectively. Apple shares continued their upward momentum following the recent announcement of new AI features aimed at boosting demand for iPhones.
The market rally was driven by AI developments, with experts highlighting the significance of the technology in shaping future trends. J. Bryant Evans, an investment advisor and portfolio manager at Cozad Asset Management, emphasized the growing role of artificial intelligence in driving market movements.
The Philadelphia SE Semiconductor index hit an all-time high, underscoring the strength of the technology sector. Companies like Broadcom, U.S.-listed shares of Taiwan Semiconductor Manufacturing Co, and Micron Technology witnessed notable gains following price-target upgrades by brokerages.
Market analysts pointed to the optimism surrounding lower interest rates as a potential factor in driving consumer spending and reducing housing costs, fueling market confidence. Major brokerages, including Goldman Sachs and Evercore ISI, have revised their year-end targets for the S&P 500, citing the technological sector’s robust performance and growing excitement around AI innovations.
Looking ahead, investors are closely watching a series of economic releases scheduled for the week, including retail sales data, industrial production numbers, housing starts, and the S&P flash Purchasing Managers’ Index. These reports, in conjunction with speeches by Fed officials, are expected to offer further insights into the economic landscape.
The market continues to anticipate potential rate cuts by the Federal Reserve, with indications of a possible cut as early as the September meeting. Despite recent market volatility, investors remain optimistic about the trajectory of the tech-heavy Nasdaq and the broader S&P 500.