S&P 500 tops 7,800 as Nasdaq hits record, AI chip rally fuels gains

The S&P 500 closed above 7,800 for the first time in history, with the Nasdaq also finishing at a record high. The rally was powered by a surge in AI chipmakers and helped by a modest dip in U.S. Treasury yields.

At the bell the S&P was up 0.58%, a modest climb that nonetheless pushed the index over the 7,800 threshold. AI chipmakers seemed to celebrate their earnings by firing off a metaphorical confetti cannon, lifting tech stocks in a display that resembled fireworks on a clear night.

Meanwhile Treasury yields slipped a notch, giving the market a brief sigh of relief and making borrowing a shade cheaper, which added to the upbeat tone.

Investors, still wary of lingering economic instability, kept buying, perhaps hoping the silicon wave will smooth out the bumps ahead.

Analysts noted that while the new high is encouraging, the market’s optimism rests on continued demand for AI technology and the still‑low cost of capital.

For now, the S&P’s 7,800 milestone has pundits revisiting their models, and the broader market is dancing to the rhythm of chips—though caution is still advised.