Tech Rebound Propels S&P 500 Toward Record Highs as AI Fears Ease

The S&P 500 closed within 0.5% of its all-time record high, driven by a significant recovery in the technology and software sectors. Software and broader tech stocks led the market higher as investor concerns regarding the sustainability of the artificial intelligence boom began to fade. Notable gains were recorded across the 'Magnificent 7' group, with Nvidia playing a central role in the broader market rally. According to Deutsche Bank, this risk-on sentiment was further supported by tightening credit spreads in both US Investment Grade and High Yield markets. The narrowing of spreads from their year-to-date wides suggests improving confidence in the underlying financial landscape. This momentum underscores a decisive shift back toward growth-oriented equities following a period of recent volatility.