S&P 500 rises 0.7% to 7,537, edging within 1% of record

The S&P 500 jumped 0.7% to 7,537.54 on Monday, pulling the index to within 1% of its all‑time high as AI‑related stocks and a rally in chip makers lifted the market despite broad weakness elsewhere【1】.

AI and chip stocks spark the rebound

Broadcom led the charge, surging 3.7% after securing long‑term silicon supply contracts with Apple, reversing two consecutive 2%‑plus losses【1】. The Nasdaq’s 1.1% rise reflected renewed optimism in AI hardware, even as many other S&P constituents fell. Marvell’s 9% jump on news of its upcoming S&P 500 inclusion added further momentum, underscoring the sector’s influence on the broader market【2】. Analysts at Citi raised their year‑end S&P 500 target to 8,100, citing AI‑driven earnings tailwinds, a lift from their prior 7,700 forecast【2】.

Mixed backdrop: commodities, bonds and global markets

While equities rallied, oil prices slipped 0.2% to $71.99 a barrel after OPEC+ announced an additional 188,000 bpd of output for August, marking the fifth consecutive month of production increases【1】. Treasury yields eased, with the 10‑year rate falling to 4.47% from 4.49% the previous day, easing pressure on fixed‑income markets【1】. International equity indices mostly slipped, though Hong Kong’s Hang Seng bucked the trend with a 1.1% gain【1】.

What to watch

• U.S. ISM services report – scheduled later this week; a reading above or below expectations could shift sentiment on inflation‑related pressures.
• Upcoming AI earnings – companies such as Nvidia and AMD reporting later in the month will test whether AI demand translates into sustainable profit growth.
• OPEC+ production decisions – any further output hikes could keep oil prices subdued, influencing inflation expectations and bond yields.

The S&P’s near‑record level shows how AI‑related rallies can offset broader market weakness, but the sustainability of the bounce hinges on earnings momentum and commodity price dynamics.