S&P 500 Forecast: US Indices Rally Today as Tech Stocks Lead Broad Gains

U.S. Stocks Rally Mid-Session as Political Fears Ease, Tech Leads Gains

The major U.S. stock indexes are higher as we approach the mid-session on Thursday as investors pounced on favorably priced shares on the back of easing political fears following an earlier setback this week.

The markets began to shave their losses early Wednesday when President Trump said military force would not be used to obtain Greenland. It rallied into the close when Trump announced reaching a deal “framework” over Greenland, bringing us to today’s broad-based gains.

Major Indexes Post Strong Gains: Dow Up 0.91%, S&P 500 Up 0.73%, Nasdaq Up 1.06%

At 16:51 GMT, the blue chip Dow Jones Industrial Average is trading 49522.64, up 445.41 or +0.91%. The benchmark S&P 500 Index is at 6925.99, up 50.37 or +0.73% and the tech-weighted Nasdaq Composite is trading 23470.479, up 245.655 or 1.06%.

Communication Services, Consumer Discretionary, and Tech Lead Sector Gains

Seven out of 11 sectors are higher on Thursday. Gains are being led by Communication Services (+1.65%), Consumer Discretionary (+1.05%) and Technology (+0.97%). Real Estate (-0.25%) and Energy (-0.18%) are the biggest losers.

Supporting the gains in the technology sector are Nvidia (+1.28%), Microsoft (+1.22%) and Meta Platforms (+4.36%).

Chip Stocks Surge Ahead of Intel Earnings Report

Chip stocks also moved higher ahead of the midsession. Microchip Technology, STMicroelectronics and On Semiconductor all rose more than 2%, while Teradyne pulled back 0.77% and Advanced Micro Devices rose 2.20%.

Chipmaker Intel climbed 0.15% ahead of its fourth-quarter earnings report, expected after the bell. Analysts polled by StreetAccount anticipate revenue of $13.42 billion and earnings of 8 cents per share.

PCE Inflation Holds at 2.8%, Pushing First Fed Rate Cut to June

In economic news, inflation stood at 2.8% in November, the Fed’s main gauge showed. The personal consumption expenditures price index (PCE), a Commerce Department measure the central bank uses as its main forecasting tool, showed inflation at 2.8% for the month, in line with the Dow Jones consensus, according to CNBC.

This data gives the Fed more time before cutting interest rates with investors now leaning on June for the first cut in 2026.

S&P 500 Recaptures 50-Day MA, Eyes Record High at 6986.33

The S&P 500 Index (SPX) daily chart shows the market strengthening as it recaptures key levels. The market is now trading on the strong side of the 50-day moving average at 6836.75, making it support. The market has room to run with potential targets the record high at 6986.33 and an uptrend line at 6992.00.

E-mini S&P 500 Futures Break Above Key Pivot, Target 7036.25 Record High

The March E-mini S&P 500 futures contract overcame a key pivot today at 6925.50 after crossing to the strong side of its 50-day moving average at 6895.70. Overcoming the uptrend line at 7003.00 will put the index in a position to challenge the record high at 7036.25.

More Information in our Economic Calendar.