Shares in the US rose to record highs on Friday, fueled by tech stocks and rising hopes about the economy.
The S&P 500 index rose 1.2% to 4,839.8, surpassing its January 2022 record, marking a recovery from a two-year slump due to inflation concerns. The Dow Jones Industrial Average also reached its record, driven by optimistic investors buying up shares.
The S&P reached a new high on Friday, marking a bull market for Wall Street. The Nasdaq surged 1.7% but remains 4% lower than its 2021 peak. Investors are optimistic about the US central bank’s potential reverse course in interest rates, which could lower borrowing costs and boost prices by pushing investors towards shares.
Tech companies are optimistic about artificial intelligence’s potential for growth. The public’s sentiment has improved, with retirement and investment accounts recovering, gas prices decreasing, and other price increases easing. The University of Michigan’s survey reported a 21% increase in sentiment over the past two months.