What Happens After S&P 500 Topped 6,279?
Ahead of U.S. Independence Day, the S&P 500 (IVV) closed at 6,279.35. The index’s topping of 6,200 for the first time is a milestone. Notably, the indices for U.S. trade partners also performed well. Since the short-lived sell-off on April 2 (Liberation Day), Mexico (EWW), Vietnam (VNM), and Canada (EWC) gained more.
The index relies on Nvidia (NVDA), with a 7.1% weight, Microsoft (MSFT) at 7%, and Apple (AAPL) at 5.9%. Meta Platforms (META) and Amazon (AMZN) also have meaningful weight to the index. Among them, sentiment needs to reverse against Nvidia for the S&P 500 to give back a few hundred points.
China’s DeepSeek and copycat models might undermine Nvidia’s moat. The graphics chip supplier needs its customers to demand the most powerful Blackwell and Hopper AI servers. DeepSeek figured out a way to distill an AI model using cheap, underpowered computer hardware.
Weak demand for chatbots at the consumer level might hurt demand for AI hardware. This would hurt Alphabet (GOOG), Broadcom (AVGO), and Meta stock. Tesla shares would weaken, since markets indirectly link its prospects to xAI. xAI owns X, which has Grok as its AI service.
Your Takeaway
The S&P 500 has no reason to lose its uptrend. Unless the economy shows signs of weakening or demand for AI-related hardware falls, the index will continue to rise.
