S&P 500, Nasdaq Hit Records

The S&P 500 and Nasdaq closed at record highs Oct. 6, rising about 0.6% and 0.5%, respectively. AI-related chip and technology stocks helped drive the rally as investors expected continued demand for chips and computing infrastructure. The gains came even as high energy costs, inflation and elevated borrowing costs have weighed on consumers and other market sectors. Treasury yields and oil prices eased Tuesday, offering relief after the 10-year yield had recently climbed to about 5.35%, its highest level since 2002. The rally was concentrated in large technology companies. The Magnificent Seven account for more than 34% of the S&P 500’s market value. Companies are expected to report nearly 30% earnings-per-share growth for the third quarter next week.