The S&P 500 has crossed the 7,000-point milestone for the first time, driven by strong investor confidence in artificial intelligence, resilient Big Tech earnings, and expectations of monetary easing. The rapid climb underscores optimism about corporate America’s ability to thrive despite tighter financial conditions.
The S&P 500 surged past 7,000 points on January 28, 2026, marking a historic moment for US markets. The rally was fueled by mounting optimism around artificial intelligence, robust technology sector earnings, and anticipated Federal Reserve rate cuts. This milestone reflects accelerating momentum in the index’s growth trajectory.
Key Highlights
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The S&P 500 gained 0.32% to close above 7,001 points, while the Dow Jones rose 114 points and the Nasdaq advanced 0.62%
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The index’s pace of growth has quickened: it took three years to move from 4,000 to 5,000, but only nine months to climb from 5,000 to 6,000, and just over a year to reach 7,000
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Technology giants including Nvidia, Microsoft, and Alphabet led the rally, supported by optimism in AI-driven revenue growth
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Analysts project S&P 500 profits to rise 15.5% in 2026, with tech sector earnings expected to jump 27%
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Investor sentiment is buoyed by expectations of further monetary easing, with traders anticipating two rate cuts in 2026 following three cuts in 2025
Sources: Reuters, Bloomberg, The Economic Times, The Straits Times, South China Morning Post