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Wall Street Hits Record Highs Fueled by AI Momentum Amid Market Breadth Concerns
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CNBC TV18•07-10-2026, 05:32
Wall Street Hits Record Highs Fueled by AI Momentum Amid Market Breadth Concerns
- •The S&P 500 and Nasdaq reached record highs on Wall Street, driven primarily by strong artificial intelligence themes and chipmaker gains.
- •Nvidia neared a $6 trillion market capitalization, while Marvell Technology and AMD saw positive momentum due to strong demand and upgraded guidance.
- •Analysts caution that the market rally is narrowly focused, with the Magnificent Seven accounting for 34 percent of the S&P 500 market capitalization.
- •Elevated bond yields and persistent short positions on the Russell 2000 index highlight underlying cautious sentiment despite headline index gains.
- •Investors are awaiting the US Federal Reserve meeting minutes and upcoming consumer credit data for further interest rate cues.
Key Questions Answered
Benchmark indices extended their gains led by the artificial intelligence theme, alongside stable oil prices around $100 a barrel and a small cool-off in bond yields.
Analysts remain concerned that the rally is narrow, with the Magnificent Seven making up 34% of the S&P 500 market cap, bond yields staying elevated with warnings of the 30-year yield hitting 6%, and heavy short positions in smallcap and S&P 500 futures.
Marvell Technology shares gained after raising its full-year growth guidance, AMD's stock added to its 2026 rally on strong chip demand, and Nvidia shares neared a $6 trillion market capitalization.
