The S&P 500 reached a record intraday high on Wednesday for the first time in more than a month, as investors returned to artificial intelligence stocks and bet that the Federal Reserve will cut interest rates again next year.
The index was last trading up 0.2% at 6,920.88 points, surpassing its previous intraday peak of 6,920.34, set on October 29, when shares of AI heavyweight Nvidia helped lift the index to a market valuation above $5 trillion for the first time.
US equities have rebounded from their November lows, with investors rotating back into leading technology and AI stocks as the year-end approaches. Moderating inflation and employment data have kept hopes alive for additional interest rate cuts next year.
The benchmark index had fallen as much as 5.7% from its October peak in November, as investors grew concerned about elevated technology valuations and the risk of a bubble in AI-related stocks, despite Nvidia posting strong third-quarter earnings.
However, AI shares regained momentum after Micron Technology forecast stronger-than-expected earnings last week.
Amid volatility in technology stocks, investors also shifted toward cyclical sectors such as financials and raw materials, helping the S&P 500 recover from its November decline.
The S&P 500 is up more than 17% year to date, while the Nasdaq Composite, which is heavily weighted toward technology stocks, has gained more than 21%, and the Dow Jones Industrial Average has risen over 13% over the same period.
