Stock market today: Nasdaq surges as chipmakers shine, Apple pops – Yahoo Finance

In a resounding display of strength, big tech companies spearheaded a rally in the stock market on Tuesday, with Apple (AAPL) notably experiencing its most robust performance since May 2023.

The S&P 500 (^GSPC) surged by 0.9%, while the Nasdaq Composite (^IXIC), known for its tech-centric composition, led the gains, climbing over 1.3%. The Dow Jones Industrial Average (^DJI) also participated in the positive momentum, registering a respectable 0.5% increase. The S&P 500 now inches closer to its record closing high of 4,796.56.

The impetus for the market’s upward trajectory came from notable advancements in big tech. A bullish revenue outlook fueled by artificial intelligence from TSMC (TSM), a crucial supplier for Apple and Nvidia (NVDA), propelled the sector forward. Despite TSMC reporting a dip in profit, it surpassed Wall Street estimates, sparking a more than 9% surge in shares of AMD (AMD) and other chipmakers.

Further contributing to the tech rally was an upgrade from Bank of America, shifting its rating on Apple stock to Buy from Neutral. This decision was based on optimism surrounding Apple’s new Vision Pro headset, potentially driving increased hardware sales. As a result, Apple’s stock experienced a notable 3% uptick.

Additionally, Atlanta Fed President Raphael Bostic’s remarks added a layer of insight. Bostic expressed a view that the Federal Reserve is unlikely to cut interest rates until the third quarter, contrary to the market’s current projection for March. This divergence is contingent on “convincing” evidence of a decline in inflation. The shift in expectations was reflected in a notable drop in the odds of a rate cut in March, as indicated by the CME FedWatch Tool.

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