US stock markets moved higher on Wednesday. The S&P 500 crossed the 7,000 mark for the first time ever. This is a major psychological level for investors. Many traders were positioning themselves ahead of the Federal Reserve’s interest rate decision. Big earnings reports from top technology companies also helped lift mood.
The S&P 500 rose about 0.3 percent during the day. It touched an intraday high of 7,002.28. This moment reflects how far the market has come over the years. Technology stocks and artificial intelligence have played a huge role in this rise.
The index has more than doubled since the lows seen during the pandemic. Strong company profits have supported the rally. Heavy investment in artificial intelligence has added fuel. Periods of easy monetary policy also helped markets grow.
The Nasdaq Composite performed even better. It climbed around 0.7 percent. Growth stocks showed fresh strength. The Dow Jones was mostly flat. It added just 24 points by the end of the session.
Investor sentiment got a boost from earnings linked to artificial intelligence. Several companies tied to the AI supply chain reported strong numbers.
Shares of ASML, a major chip equipment maker, rose about 1 percent. The company reported record orders. It also gave a strong outlook for 2026. ASML said demand for advanced chipmaking machines remains strong as AI spending continues to grow worldwide.
Seagate Technology saw an even bigger jump. Its shares surged more than 13 percent. The company beat expectations on earnings and revenue. Its CEO said demand for data storage is rising fast. Artificial intelligence workloads are driving this growth. This showed that AI demand is spreading across the hardware and semiconductor space.
Chip stocks also benefited from news out of China. A report said Chinese regulators have allowed companies like ByteDance, Alibaba, and Tencent to buy Nvidia’s H200 AI chips. This helped ease worries about Nvidia’s access to the Chinese market.
Nvidia shares climbed about 2 percent after the news. Other chipmakers also moved higher. Advanced Micro Devices and Taiwan Semiconductor gained as well. Investors felt relieved as export controls have been a long-standing concern for the sector.
Later in the day, attention turned to the Federal Reserve. The central bank is set to announce its first policy decision of the year. Most investors expect no change in interest rates. The current target range is seen staying between 3.5 percent and 3.75 percent.
Even though a pause is expected, markets are watching closely. Investors want hints about what comes next. The wording of the Fed’s statement will be key. Any comments about future rate cuts will be closely analysed.
Futures markets suggest traders expect two small rate cuts by the end of 2026. This is based on data from the CME FedWatch Tool. Inflation has been cooling. The job market is showing signs of stability. At the same time, political pressure is growing.
President Donald Trump has repeatedly pushed for lower interest rates. This adds another layer of focus on the Fed’s decision. Markets are now waiting to see how the central bank responds.
