US stocks closed at a record high for the third time this week, buoyed by semiconductor stocks, solid employment data and a US-Iran ceasefire that appeared intact even with clashes near the Strait of Hormuz.
The S&P 500 Index rose 0.8%, with five of 11 sectors rising, led by a 2.7% increase for the tech segment. The Nasdaq 100 Index climbed 2.4%, also to an all-time high.
Heavyweight chip stocks Nvidia Corp. and Micron Technology Inc. powered higher, with Micron surging 15%, the most in more than a year, while the Philadelphia Semiconductor Index rose 5.5% to a record as well. Intel Corp. rallied 14% after the Wall Street Journal said the company reached a preliminary chip manufacturing pact with Apple Inc. Also, AI chipmaker Cerebras Systems Inc. was said to be poised to raise its IPO price range on mounting demand.
“S&P 500 earnings growth is legit,” said Prime Capital Financial Chief Investment Officer Will McGough. Investors are unlikely to see a “material prolonged draw-down or recession until the earnings-per-share train starts getting revised lower.”
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