FX.co ★ U.S. Stocks See Further Upside, S&P 500 Climbs Above 5,600 For First Time

### Market Overview

After beginning the session on a positive note, stocks have continued their upward trajectory throughout Wednesday's trading. The major indices have all surged into positive territory, with the S&P 500 crossing the 5,600 mark for the first time in history.

Currently, the indices are just below their peak levels of the session. The Nasdaq has risen by 180.09 points, or 1.0 percent, to 18,609.38. The S&P 500 has increased by 37.72 points, or 0.7 percent, to 5,614.70, and the Dow has gained 197.17 points, or 0.5 percent, reaching 39,489.14.

### Key Drivers

The rally on Wall Street is partly driven by the strength in technology stocks, as indicated by the significant rise in the tech-heavy Nasdaq. This momentum follows a robust earnings report from Taiwan Semiconductor (TSM), which posted a much larger-than-expected second-quarter sales increase.

Shares of Taiwan Semiconductor, a supplier for AI leaders such as Nvidia (NVDA) and Apple (AAPL), are up by 2.7 percent.

Additionally, market sentiment is being bolstered by optimism regarding interest rate trends ahead of a closely watched consumer price inflation report due on Thursday. Economists predict the annual consumer price growth rate will decelerate to 3.1 percent in June from 3.3 percent in May. The core consumer price growth is expected to remain steady at 3.4 percent.

During his congressional testimony, Federal Reserve Chair Jerome Powell indicated that further positive economic data could enhance the Fed's confidence in achieving its 2 percent inflation target, potentially leading to an interest rate cut. However, he also cautioned about the risks of maintaining higher interest rates for too long, which could hamper economic growth.

Powell elaborated, "Given the progress made in lowering inflation and cooling the labor market over the past two years, we face risks from elevated inflation but also from economic inactivity caused by excessive policy restraint."

### Sector Performance

Gold stocks have surged today, propelling the NYSE Arca Gold Bugs Index up by 2.3 percent. This index reached its highest intraday level in over two years, driven by a rise in gold prices. Gold for August delivery has climbed $11.30 to $2,379.20 per ounce.

Semiconductor stocks also continue to show substantial strength, reflected by a 2.1 percent surge in the Philadelphia Semiconductor Index, which hit a new record intraday high.

Housing stocks have advanced as well, leading to a 1.7 percent increase in the Philadelphia Housing Sector Index. Biotechnology, brokerage, and pharmaceutical stocks are also experiencing gains, with most major sectors showing positive movement.

### Global Markets

Internationally, Asia-Pacific markets saw mixed results on Wednesday. Japan's Nikkei 225 Index rose by 0.6 percent, while China's Shanghai Composite Index fell by 0.7 percent.

European markets have all moved upward for the day. The U.K.'s FTSE 100 Index has grown by 0.7 percent, and both Germany's DAX Index and France's CAC 40 Index have jumped by 0.9 percent.

### Bond Market

In the bond market, treasuries have shown little direction ahead of the upcoming inflation data release. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, has decreased by less than a basis point to 4.290 percent.