On Thursday, the S&P 500 reached a new all-time intraday high amid falling oil prices and investors’ assessment of fresh inflation data. The broad market index gained 0.65% and, for the first time ever, topped the 7,800 level. It finished at 7,798.99, a record closing high. The Nasdaq Composite rose 0.81% and ended the session at 26,803.03, supported by gains in Meta Platforms, Micron Technology, and Netflix. The Dow Jones Industrial Average added 0.13%, or 69.72 points, to 53,839.99.
A favorable interest-rate backdrop amid cooling inflation fueled another strong advance in growth stocks. The information technology sector (+1.0%) was among the leaders, with a sizable portion of the early gains driven by memory makers. Sandisk and Western Digital were among the top gainers within the S&P 500 components, while SK hynix Inc. extended its August rebound and returned to its IPO opening price of $170.
However, semiconductor stocks lost considerable momentum in the afternoon, leaving the PHLX Semiconductor Index up just 0.5% after rising more than 2.0% early in the session. Coherent notably lagged the group following its quarterly report. Overall, the pullback in semiconductor stocks coincided with a sharp rise in software shares, pointing to some rotation within the technology sector in the second half of the day.
The communication services sector (+1.6%) led all S&P 500 sectors. Netflix shares jumped after reports that Bill Ackman’s Pershing Square fund took a new stake in the company. The real estate sector (+1.3%) also stood out as Treasury yields fell following the release of inflation data.
The materials sector (-0.7%) posted the weakest performance of the day amid declines in precious metals prices and softer performance among fertilizer producers.