S&P 500 hits record high as rate-hike worries ease; Sandisk soars 13.7%, Micron jumps 4.2%

The S&P 500 climbed to an intraday record high on Thursday, powered by advances in semiconductor and other heavyweight technology stocks. The index rose 0.7% to 7,798, buoyed by a retreat in crude prices and a tame producer price inflation reading that lifted risk appetite.¹

Chip stocks were significant contributors to the rally, with Sandisk soaring 13.7% and Micron Technology jumping 4.2%, marking a strong recovery from previous declines of 31.6% and 16.4% in July, respectively. The broader chip index added 1.8% and hit a nearly one-month high.²³⁵

Technology stocks also boosted the Nasdaq, with the S&P 500 information technology index gaining 0.9%, aided by modest gains in major players like Microsoft, Nvidia, and Apple. Josh Chastant, managing director of public markets at GuideStone, noted, "We're starting to see broad-based earnings really pick up across sectors ... where the value is not going to just solely be accrued to semiconductor and data center names, but now back into the actual model builders themselves."

As traders adjusted their expectations for Federal Reserve interest rate hikes, the likelihood of a hold next month increased to 65%, compared to 60% prior to the latest economic data release. This shift in sentiment contributed to the overall market optimism, despite the Dow Jones Industrial Average experiencing a slight decline of 0.18%.