• The S&P 500 rose to an intraday record high, last up 0.6%, as major growth and tech stocks surged.
  • Broad-based gains were supported by better-than-expected earnings and hopes that the Federal Reserve is nearing the end of its rate-hiking cycle.
  • Investors are now watching for signals from upcoming economic data and Fed speeches for direction.

A Record Intraday High

The S&P 500 climbed to an intraday record on Thursday, last up 0.6%, with technology and other growth stocks leading the charge. The benchmark index touched a high of 5,000.5, surpassing its previous peak set earlier this year, according to data compiled by Bloomberg.

The rally was fueled by a combination of positive earnings surprises and renewed optimism that the Federal Reserve will soon pause its aggressive monetary tightening. "The market is increasingly confident that the disinflation trend will continue, and that the Fed will not need to hike much further," said Emily Carter, senior portfolio manager at a large asset manager. She added that "the earnings season has been constructive, with many companies beating estimates, especially in the tech sector."

Growth Stocks Lead

Shares of mega-cap technology companies, including Apple, Microsoft, and Nvidia, were among the biggest contributors to the index's gains. The tech-heavy Nasdaq Composite rose 0.9%, also hovering near record levels. Chipmakers were particularly strong after a major semiconductor company raised its revenue forecast, citing robust demand for AI-related products.

In contrast, defensive sectors like utilities and consumer staples lagged, as investors rotated into riskier assets. The yield on the 10-year Treasury edged lower to 4.12%, providing further support for high-valuation growth stocks.

Market Breadth and Sentiment

Market breadth was positive, with roughly three-quarters of S&P 500 components trading higher. The advance was broad-based, though financials and industrials also gained, reflecting optimism about the broader economy. "We're seeing a classic risk-on day," noted James Liu, a market strategist at a brokerage firm. "The fact that the rally is not just in tech is encouraging."

Investor sentiment has also been bolstered by recent data showing a resilient labor market and cooling inflation. Futures tied to the Federal Reserve's policy rate now price in a near-certain pause at the next meeting, with a possibility of rate cuts later in the year.

What Analysts Are Saying

Some strategists caution that valuations remain stretched, with the S&P 500 trading at about 20 times forward earnings, above the historical average. "The market is pricing in a soft landing, but any disappointment in economic data could trigger a sharp pullback," said Sarah Thompson, chief equity strategist at a financial advisory firm. She advised investors to "stay selective and focus on companies with strong balance sheets."

Others point to strong corporate profits as justification for the rally. "Earnings growth is broadening out beyond the mega-caps, which is a healthy sign," said David Kim, an equities analyst. "We expect double-digit earnings growth for the full year."

Looking Ahead

Traders will now focus on the upcoming consumer price index report and remarks from Fed officials for further clues on the policy path. Any surprises could alter the current trajectory. As one market participant put it, "The excitement is palpable, but so is the nervousness. We've seen this movie before—records can be fleeting."

This article was updated with additional trading data at 2:15 PM ET.