On Friday, the S&P 500 and Nasdaq Composite reached all-time highs, fueled by renewed enthusiasm for artificial intelligence and expectations of looser monetary policy, marking a recovery from months of steep declines.

The benchmark S&P 500 once rose to 6,174.08, surpassing its previous peak of 6,147.43 on February 19. The tech-heavy Nasdaq also reached 20,281.02 for a moment, exceeding its prior record of 20,204.58 set on December 16.

This week's rebound was driven by optimistic forecasts from chipmaker Micron Technology, reigniting investor confidence in AI, while Nvidia's return as the world's most valuable company pushed its market cap closer to a historic $4 trillion.

Risk appetite also benefited from a U.S.-brokered ceasefire in the 12-day air war between Israel and Iran, which had previously sent oil prices soaring and stoked inflation fears.

Dovish remarks from Federal Reserve policymakers further lifted market sentiment.

The S&P 500 had teetered on the edge of a bear market after former President Trump's April 2 imposition of "reciprocal tariffs" on major trading partners and their chaotic rollout. At its lowest point, the index was down 19% from its February 19 record close.

Days after Trump's April 2 "Emancipation Day," the Nasdaq plunged 26.7% from its prior peak, confirming a bear market.

Since then, U.S. trade deals with the UK and China have bolstered expectations for more agreements, raising hopes of avoiding a global recession.

"Investors have reassessed the president's handling of trade issues, and perhaps fears that tariffs would trigger massive inflation and economic collapse won't materialize," said Robert Pavlik, senior portfolio manager at Dakota Wealth Management.

From its April 8 closing low, the S&P 500 has surged over 23.5%, while the Nasdaq has jumped roughly 32%, largely powered by a handful of mega-cap tech stocks like Microsoft, Nvidia, Meta, and Amazon.

UBS Raises S&P 500 Target to 6,200

UBS Global Wealth Management on Thursday also raised its year-end target for the S&P 500 from 6,000 to 6,200, citing easing trade tensions and stronger-than-expected corporate earnings resilience.

The new target implies about 1% upside from Thursday's close of 6,141.02. Earlier this month, Citigroup and Barclays also lifted their forecasts for the index.