The S&P 500 is poised to close at a record high above 6,400 for the first time. Large-cap tech stocks like Nvidia, Microsoft, Apple, and Amazon have outperformed the index, with an emphasis on AI growth stories driving US equity returns, according to DataTrek Research Co-Founder Jessica Rabe.

Top 20 stocks in the S&P 500 have surged 40.6% since the market bottom, outpacing the index’s 27.9% gain. Tech companies leveraging disruptive innovation, like gen AI, are fueling equity returns. Information Technology and Industrials are the only sectors surpassing the index since the market’s rebound.

Citi US equity strategist Scott Chronert raised his year-end S&P 500 target to 6,600, attributing the Industrials rally to an extension of the AI trade. Companies across sectors are benefiting from increased AI spending, indicating a broader AI influence beyond just technology stocks.

Read more at Yahoo Finance: S&P 500 closes above 6,400 for first time as rate cut bets jump after CPI inflation report