Investing.com — The S&P 500 closed above 5,600 for the first time on Wednesday, boosted by tech stocks and hopes of an early interest rate hike after Federal Reserve Chairman Jerome Powell delivered a second day of testimony before Congress a day before the release of the latest inflation figures.
As of 4:00 PM ET (8:00 GMT), the stock price was up 1% to close at 5,633.50, its sixth consecutive day of record highs. The stock price was up 1% to close at an all-time high. The stock price was up 442 points, or 1%, to close at 5,633.50, its sixth consecutive day of record highs.
Tech dominance as Apple and Nvidia rise
Technology stocks continued to power the broader market’s record gains, driven by gains in Nvidia and Apple (NASDAQ:), which rose 1% on renewed investor optimism about iPhone sales.
Bloomberg reported, citing anonymous sources, that Apple is aiming to ship 10% more new iPhones in 2024 than last year, on the hope that AI-enabled iPhones will spur demand.
Microsoft (NASDAQ:) rose 1% after it was reported the software giant plans to give up its observer status on the OpenAI board amid growing regulatory scrutiny of generative AI in Europe and the U.S.
Microsoft deputy general counsel Keith Dolliver wrote in a letter to OpenAI on Tuesday that the observer seat provided valuable insight into the board’s activities without compromising its independence, but that it is no longer necessary because Microsoft has “witnessed great progress with the newly formed board.”
Meanwhile, NVIDIA Corporation (NASDAQ:) rose more than 2%, lifting stocks across the chip and technology sector.
Powell predicts path to soft landing
The Federal Reserve chairman said on Wednesday he still sees a soft landing for the U.S. economy, even as the central bank continues to keep monetary policy tight to tame inflation.
But the Fed chairman repeated his comments from the previous day, saying “keeping inflation down” is not the only risk and that the central bank “needs to be mindful of the conditions in the labor market.”
Following the Fed chairman’s comments, traders are seeing a 72% or higher chance of the central bank keeping its September rate cut roughly in place and a 25 basis point cut in the month.
Keep an eye on inflation data
Powell’s comments focused attention on inflation data due to be released on Thursday.
Economists expect the CPI to rise 0.1% from the previous month and 3.1% from a year ago. Core CPI, which excludes energy and food prices, is expected to rise 0.2% from the previous month and 3.4% from a year ago.
Energy stocks edge higher as oil prices catch up with declining crude inventories
Energy stocks have been weak recently after Exxon (NYSE:) and BP (NYSE:) warned of falling refining profits, but they ignored this and rose as crude oil prices rose on data showing weekly and gasoline inventories fell more than expected.
Data released on Wednesday showed U.S. crude oil inventories unexpectedly fell by 3.4 million barrels last week, following expectations of an increase of 700,000 barrels.
Baker Hughes Co. (NASDAQ: Chevron Within the energy sector, Corporation (NYSE:) and Phillips 66 (NYSE:) were the biggest gainers on the day.
(Peter Nurse and Amber Warrick contributed to this article.)
