FOMO outweighed uncertainty: The S&P 500 hit a new high for the first time since August

The broad U.S. stock index, the S&P 500, and the tech-heavy Nasdaq Composite closed at new all-time highs on October 6. They achieved these results amid stabilizing oil prices and falling yields on U.S. Treasury bonds. This trend somewhat eased investors’ concerns about inflation and a possible Fed rate hike and allowed the markets to shift their focus to the upcoming third-quarter earnings season, according to Reuters.

The S&P 500 rose 0.58% on Tuesday to 7,818.93 points—closing at a new high for the first time since August, according to Bloomberg. During the session, the index surged to another all-time high of 7,844.52. The Nasdaq Composite also closed at a record high of 27,599.79 points, rising 0.45% on October 6.

“As optimism about technology and the fear of missing out (FOMO) outweigh macroeconomic and political uncertainty and overshadow other issues, investors who are unwilling to bet on a narrow group of market leaders in the AI and technology sectors are increasingly at risk of falling behind the market,” Bank of America strategists led by Benjamin Bowler wrote in a note to clients.

This article is being updated

This article was AI-translated and verified by a human editor