S&P 500 hits 5,000 for first time; Microsoft topples Apple as world's largest company
The S&P 500 surpassed the milestone of 5,000 points for the first time, bolstered by strong corporate earnings and economic data, as well as reports of easing inflation from the Bureau of Labor Statistics.
Although there's general market optimism, experts like Crossmark Global Investments CEO Bob Doll note the rally is driven mainly by a few tech giants.
Microsoft, in particular, has overtaken Apple to become the world's largest company with a market capitalization exceeding $3 trillion.
Under CEO Satya Nadella's leadership, Microsoft's record revenues of $62 billion, particularly from cloud and AI services, have propelled it to become the first American company to reach a market value of $3.124 trillion.
The tech sector, along with communication and consumer discretionary stocks, has seen impressive growth over three months, significantly outperforming the S&P 500.
However, Scott Wren from Wells Fargo Investment Institute suggests that, given their overvaluation, investors should consider reducing their holdings in technology and communication services to neutral levels and underweight their consumer discretionary investments.
Despite these concerns, the tech-focused sectors have led the S&P 500's 5% increase this year and its 22% rise over the past twelve months.