S&P 500 sets new record as megacap tech powers Wall Street rally

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S&P 500 hits record high as tech stocks lead gains

Highlights

- S&P 500 closes at 6,693.74, up 0.44%, marking its third straight record high.

- Tech giants including Nvidia, Oracle, and Apple drove much of the session’s advance.

- Focus shifts to U.S. inflation data as markets weigh the Fed’s next policy steps.

Technology stocks once again anchored the index. Nvidia climbed nearly 4% after outlining plans to invest up to $100 billion in OpenAI, reinforcing its dominant role in the AI infrastructure market. Oracle surged 6.3% on leadership changes and continued enthusiasm for its AI offerings, while Apple advanced 4.3% on strong demand for the iPhone 17. Tesla added 1.9% as optimism grew around self-driving initiatives and upcoming product launches.

Together, these companies provided much of the upward thrust for the benchmark, extending a trend of concentrated leadership by a handful of tech giants. The rally has left the S&P 500 up 1.22% over the past week, pushing valuations higher but also keeping sentiment firmly anchored in growth narratives.

Technical picture remains bullish

From a technical perspective, S&P 500 index continues to track its rising channel that has been intact since May. The breakout above 6,650 confirmed fresh bullish momentum, with the next upside target at 6,720–6,750. Immediate support rests at 6,550, where the 20-day EMA converges, while deeper protection sits at 6,420 and 6,250 through the 50-day and 100-day EMAs.

S&P 500 price dynamics (Source: TradingView)

Momentum indicators show signs of excess. The RSI at 74.5 has entered overbought territory, raising the likelihood of near-term consolidation. However, in strong trending markets, such readings often signal acceleration rather than imminent reversal, particularly when supported by sector breadth.

Policy backdrop and outlook

Macro focus now shifts to the Federal Reserve’s preferred inflation measure, the PCE price index, due Friday. A softer print would reinforce expectations of additional rate cuts later this year, while a hotter reading could temper enthusiasm. Recent Fed commentary has struck a cautious tone, but markets still anticipate at least two more reductions before year-end.

For now, structural drivers—resilient U.S. growth, strong corporate earnings, and abundant liquidity—continue to underpin equities. The S&P 500’s ability to hold above the 6,550–6,420 support zone will be critical for sustaining momentum. A breakout toward 6,720–6,750 remains the near-term path of least resistance, while dips are likely to be met with renewed demand.

Previously, we highlighted how the index’s rising channel has guided gains since May. That framework remains intact, with recent breakouts confirming bullish structure even as short-term overbought signals suggest a possible pause.

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