S&P 500 Crosses 6,500 for the First Time Ever

The S&P 500 closed above 6,500 points for the first time on Thursday, powered by upbeat U.S. economic data and robust corporate earnings led by Nvidia. The milestone underscores a wave of investor optimism as Wall Street continues to ride the momentum of strong growth and artificial intelligence enthusiasm.

**The S&P 500 closed above 6,500 points for the first time on Thursday, powered by upbeat U.S. economic data and robust corporate earnings led by Nvidia.**Nvidia

JUST IN: The S&P 500 hits 6,500 for the first time in history. pic.twitter.com/juS6la2eLt

— Brew Markets (@brewmarkets) August 28, 2025

JUST IN: The S&P 500 hits 6,500 for the first time in history. pic.twitter.com/juS6la2eLt

— Brew Markets (@brewmarkets) August 28, 2025

JUST IN: The S&P 500 hits 6,500 for the first time in history. pic.twitter.com/juS6la2eLt

Economic Growth Provides Solid Foundation

Revised government figures showed that U.S. GDP expanded by 3.3% in the second quarter, up from an earlier estimate of 3.0%. The stronger pace was largely fuelled by consumer spending, reinforcing the view that the economy remains resilient despite higher borrowing costs. For investors, the data eased concerns of a slowdown and provided fresh confidence that corporate earnings can continue to grow.

Nvidia Leads the Charge

Nvidia, a heavyweight within the S&P 500, once again proved pivotal. The chipmaker reported a 56% year-on-year surge in revenue, surpassing market expectations. Although its forward guidance was broadly in line with forecasts, the performance highlighted the depth of demand for AI-related technologies. The stock’s rise helped lift other technology shares, further boosting the index.

The S&P 500 edged up 0.3% to close at 6,501.86, its second straight record finish and the first ever above the 6,500 threshold. The Dow Jones Industrial Average and Nasdaq Composite also notched gains, extending a rally that has increasingly broadened beyond just technology shares. The achievement adds to a series of milestones this year, marking the latest chapter in a market driven by strong fundamentals and speculative energy alike.

Mixed Sector Performance

Not all companies benefited from the bullish trend. Hormel Foods dropped sharply after issuing a cautious outlook and warning of higher costs, sending its shares down nearly 13%. Healthcare and consumer staples also lagged, tempering some of the enthusiasm generated by technology’s rise. The contrast highlights the uneven nature of the rally, with certain industries thriving while others contend with lingering challenges.

While investors welcomed the record close, analysts urged caution. Market valuations are now at historically elevated levels, raising questions about sustainability. Much will depend on forthcoming inflation data, including the core PCE index, and how the Federal Reserve responds to interest rates. A supportive economic backdrop could keep momentum alive, but any hint of persistent inflation or tighter policy may quickly test market sentiment.

Conclusion

The S&P 500’s breakthrough above 6,500 represents a blend of solid economic growth, strong corporate earnings, and enduring enthusiasm for technology, particularly artificial intelligence. The achievement reinforces confidence in U.S. markets, though investors remain alert to potential headwinds from inflation and monetary policy.