S&P 500 and Nasdaq surge to record highs after AI chipmaker rally

A trader on the stock exchange floor.Photograph: Brendan McDermid/Reuters The S&P 500 and Nasdaq closed at a record high after a rally around AI chipmakers and a dip in US treasury yields. At market's close, the S&P 500 was up 0.58%, topping 7,800 for the first time in its history. The tech-heavy Nasdaq index rose 0.45%, while the Dow, which is slightly down from its record high in August, climbed 0.49%. Investors appeared optimistic after recent developments for chipmakers including Marvell Technology, Advanced Micro Devices and Broadcom that showed growth in the markets for the chips used to power AI. Wall Street has also grown more optimistic that the US Federal Reserve will leave interest rates unchanged at its next board meeting in October.