U.S. stocks pushed into uncharted territory on Wednesday, with the S&P 500 notching its first intraday record in more than a month as investors returned aggressively to artificial intelligence-linked stocks and renewed bets that the Federal Reserve will cut interest rates again next year.
The benchmark index rose as much as 0.2% to 6,920.88 points, edging past its previous intraday high of 6,920.34 set on October 29. That earlier peak came during a powerful surge in heavyweight technology names, led by Nvidia, which helped lift the combined market value of the index above the $5 trillion mark for the first time.
Wednesday’s move underscores a revival in risk appetite following a turbulent November, when markets pulled back sharply on concerns over stretched valuations in big technology stocks and fears that enthusiasm around AI-linked companies had run too far, too fast. From its October high, the S&P 500 slid as much as 5.7% last month as investors reassessed positioning, even as Nvidia delivered upbeat third-quarter earnings that reinforced its dominance in the AI chip market.
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Sentiment has since turned more constructive. A benign U.S. inflation report and a steady jobs print have reinforced expectations that the Fed is nearing the end of its tightening cycle, with markets increasingly pricing in further rate cuts in 2026. Lower borrowing costs tend to support equity valuations, particularly for growth stocks whose earnings are expected further into the future, helping to draw investors back into large-cap technology and AI names as the year-end approaches.
The renewed momentum in the AI trade gathered pace last week after Micron Technology issued a stronger-than-expected profit forecast, signaling sustained demand for memory chips used in data centers and AI applications. CEO Sanjay Mehrotra delivered the warning during the company’s latest earnings call, telling investors that tight conditions across memory markets are likely to persist for years rather than quarters.
“Sustained and strong industry demand, along with supply constraints, are contributing to tight market conditions and we expect these conditions to persist beyond calendar 2026,” Mehrotra said, tempering expectations that new capacity will quickly ease shortages.
The outlook helped lift sentiment across the semiconductor space, which remains a key pillar of the broader U.S. equity rally.
Market leadership, however, has broadened beyond technology alone. As tech stocks swung in recent weeks, investors also rotated into more cyclical sectors such as financials and materials, providing additional support for the S&P 500 and aiding its recovery from November’s slump. Financial stocks have benefited from resilient economic data and stable credit conditions, while materials have drawn support from expectations of improved industrial demand.
So far this year, U.S. equities have delivered strong gains. The S&P 500 is up more than 17% year to date, the tech-heavy Nasdaq has climbed over 21%, and the blue-chip Dow Jones Industrial Average has advanced more than 13%. The performance gap highlights the continued dominance of technology and AI-linked stocks in driving market returns, even as other sectors have recently joined the rally.
With major indexes hovering near record levels, investor focus is shifting toward the sustainability of earnings growth and the path of monetary policy in the months ahead. For now, optimism around artificial intelligence, combined with expectations of easier financial conditions, is keeping U.S. stocks firmly supported as markets head into the final stretch of the year.