Trio of Magnificent Seven stocks close at record highs

Big tech stocks drove US stock markets higher on Friday afternoon, more than offsetting any worries over when the Federal Reserve will start cutting interest rates.

Chip designer Nvidia led the charge with a 3 per cent increase by mid-afternoon in New York, bringing its gains for the week to almost 8 per cent. Smaller rival AMD jumped 4 per cent, while Alphabet, Meta and Apple all recorded solid gains.

The tech sector was the main driver of a 1.2 per cent increase in the S&P 500, bringing the benchmark index to a record high for the first time since January 2022. The Nasdaq Composite rose 1.6 per cent.

The yield on the two-year Treasury note, which is particularly sensitive to interest rate expectations, added 0.06 percentage points to 4.42 per cent. Higher bond yields reflect lower prices.

The stock market gains came despite further signs of economic resilience, including a closely watched survey that showed consumer sentiment hit its highest level since July 2021 and inflation expectations had fallen.