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The S&P 500 is approaching 5,490 points, recording its 31st record high this year.
The company at the heart of the artificial intelligence boom could be worth nearly $5 trillion next year, up from about $3.3 trillion now, an optimistic analyst has predicted.
Bonds rose as traders flocked to buy $13 billion worth of 20-year Treasuries.
Mixed data
Wall Street saw mixed economic data showing U.S. industrial production rose, supported by a broad-based rebound in factory output. Separately, retail sales rose slightly, with prior months revised down.
A group of Federal Reserve officials also stressed the need for more evidence that inflation has actually cooled before cutting interest rates.
“Investors should look at the glass as half full, but be aware of macroeconomic conditions, as well as the nuances between corporate and consumer earnings, and incoming economic data could evolve in ways that could depress asset prices at this time,” said Anthony Saglimpani of Ameriprise.
The S&P 500 is nearing 5,490, its 31st record high this year. Nvidia shares rose 3.5% after Rosenblatt Securities analyst Hans Mosesman on Tuesday raised his price target for the chipmaker to the highest on Wall Street. At $200, after it was $140. The yield on the 10-year Treasury note fell seven basis points to 4.21%.
Pumping money into the stock market
Bank of America’s institutional clients continued to invest in U.S. stocks for a second straight week, focusing on technology and social media stocks, strategists including Jill Carey Hall wrote in a note to clients.
Separately, a survey by the bank showed that global investors are likely to continue to pour money into record-breaking stock markets.
Asked which asset class would benefit most from reallocating money market funds, 32% of respondents said money would go to U.S. stocks, 19% said money would go to global stocks, and a quarter said they would buy government bonds.
There’s little doubt in the market right now that it can dampen enthusiasm for a rally in U.S. stocks, led by a handful of technology stocks. But some investors are increasingly looking for ways to hedge concentration risks.
As the market hits new records, this focus is becoming more intense. The so-called “Big Seven” companies (Microsoft, Nvidia, Apple, Meta, Amazon, Alphabet, Tesla) have contributed more than 60% of the S&P 500’s returns this year.
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