S&P 500 Hits 7,840 Record High as AI Bets Outrun 10-Year Consumer Gloom
Updated
Updated · The Washington Post · Oct 6
S&P 500 Hits 7,840 Record High as AI Bets Outrun 10-Year Consumer Gloom
3 articles · Updated · The Washington Post · Oct 6
Summary
The S&P 500 rose nearly 1% Tuesday to above 7,840 by midday, setting a fresh record high after last topping that level in August.
AI spending optimism is driving the rally, with investors betting massive corporate outlays will translate into stronger profits even as the broader economy looks less convincing.
Consumer confidence, by contrast, has fallen to its lowest level in more than a decade—worse than during the pandemic, according to the Conference Board.
Bill Adams of Fifth Third said job growth is running in low gear and wage gains are trailing living costs, leaving portfolio owners and older 401(k) savers better positioned than paycheck-to-paycheck households.