US stock markets closed at record highs on Friday boosted by continued investor enthusiasm for artificial intelligence (AI).
Both the S&P 500 and the technology-dominated sector Nasdaq set records, and the Nasdaq surpassed its last peak in 2021, boosted by gains from Facebook owner Meta and Nvidia, the top maker of artificial intelligence chips.
Nvidia closed above $2 trillion in market value for the first time. Nvidia's market value has doubled in nine months. Shares of rival Advanced Micro Devices also hit an all-time high, and the broader Philadelphia Semiconductor Index set a new record.
Including the Dow Jones Index, all three major indexes posted their fourth consecutive month of gains in a rally driven largely by AI-related growth prospects.
Markets have been supported by a resilient economy, as investors have tried to gauge the timing of the government's first interest rate cut. Federal Reservewith investors currently targeting June and fueling expectations that the central bank can achieve a soft landing for the economy.
"Because the economy is doing well and inflation is still a little sticky, it will take longer for the Federal Reserve to lower interest rates," said Sam Stovall, chief investment strategist at CFRA Research in New York.
"But that's good because we will gradually get out of the cycle of higher interest rates and we don't need to cut rates aggressively."
According to preliminary data, the S&P 500 gained 41.16 points, or 0.81%, to finish at 5,137.43 points, while the Nasdaq Composite gained 183.02 points, or 1.14%, to 16,272.22 . The Dow Jones Industrial Average rose 90.43 points, or 0.24%, to 39,088.11.
Reuters contributed reporting
