The S&P 500 moved above the 7,000 level on Wednesday, marking a new record for the benchmark as investor optimism tied to artificial intelligence and expectations for robust Big Tech earnings underpinned gains.
Market participants have observed an accelerating pace of index gains in recent years. Where it previously took roughly three years for the index to rise from 4,000 to 5,000 points, the climb from 5,000 to 6,000 occurred in roughly nine months, with the 6,000 milestone reached in November 2024. The advance to 7,000 continues that trend of faster, larger milestones.
Technology-related names have been central to the move higher. Firms linked to AI have seen proportionally larger price appreciation, and technology stocks now make up nearly half of the S&P 500 index. Notable examples cited by market commentators include Nvidia, Microsoft and Alphabet, which have contributed materially to index performance.
Analysts pointed to a string of earnings and guidance that have buoyed the sector. Results described as robust from companies such as ASML Holding, F5 Inc., SK Hynix, Seagate Technology and Texas Instruments were highlighted as lifting sentiment across technology and semiconductor-related segments, supporting further upside in the market.
A key near-term test for the tech-led rally comes after the market close on Wednesday, when Microsoft, Meta and Tesla are set to report quarterly results. Apple is scheduled to report after the close on Thursday. Those reports are expected to provide fresh data points on revenue, margins and guidance for some of the largest constituents of the index.
Monetary policy expectations are also affecting investor behavior. Markets have priced in the potential for interest-rate reductions by the U.S. Federal Reserve, with traders betting on two 25-basis-point cuts in 2026 following three rate reductions by the Fed last year. The Fed was widely expected to hold rates at its meeting later on Wednesday, and investors were watching closely for commentary from Chair Jerome Powell, particularly after his recent disclosure that the Department of Justice had issued a subpoena to the central bank.
Political commentary accompanied the market milestone, with public remarks noting the S&P's new high.
What to watch next
- Post-close earnings from Microsoft, Meta and Tesla, and Apple’s report the following day.
- Federal Reserve communications and any signals on the timing of future rate cuts.
- Follow-through in AI-related and semiconductor stocks after recent robust corporate results.