The S&P 500 and Nasdaq closed at record highs on Friday as technology companies climbed on sustained enthusiasm for artificial intelligence and falling Treasury yields.
Nasdaq (.IXIC) established an intraday high and recorded a second consecutive closing record as AI-related firms including Nvidia (NVDA.O) and Meta Platforms (META.O) helped it surpass its November 2021 top of 16,212.23.
The three major indices gained for the fourth straight month in February, boosted by AI growth hopes and semiconductor names.
Nvidia shares rose 4% Friday, crossing $2 trillion in market value for the first time. In the session, rival Advanced Micro Devices (AMD.O) shares rose 5.25% to $202.64, while the broader Philadelphia semiconductor index (.SOX) rose 4.29% to a record.
A strong economy has supported markets as investors try to predict the date of the Federal Reserve's first interest rate decrease, with investors eyeing June and growing confidence the central bank can orchestrate a soft landing for the economy.
"Because the economy is doing well and inflation remains a bit sticky, the Fed will be slower to lower interest rates," said CFRA Research's New York chief financial strategist Sam Stovall.
"But that's good because then we're gradually coming off of the higher interest rate cycle and we're not in need of cutting rates aggressively."
The Dow Jones Industrial Average (.DJI) rose 90.99 points, or 0.23%, to 39,087.38, the S&P 500 (.SPX) jumped 40.81 points, or 0.80%, to 5,137.08, and the Nasdaq Composite (.IXIC) increased 183.02 points, or 1.14%, to 16,274.94.
The Dow dipped 0.11%, the S&P 500 rose 0.95%, and the Nasdaq rose 1.74% weekly. Despite a strong services sector and tight labor market, manufacturing remains poor, although Friday statistics showed signs of a revival.
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