The S&P 500 has hit a record high, climbing 1.8 percent and surpassing its previous peak set in early June. The advance marks a sharp turnaround from a recent selloff in technology stocks and points to renewed market confidence.
The milestone comes as younger Americans are increasingly turning to stocks to build wealth. Gen Z and Millennial investors now hold a record $3.1 trillion in stocks, according to a new report, as they find themselves locked out of the housing market. With home prices beyond reach, many have shifted savings into brokerage accounts instead of saving for a down payment.
Experts, however, warn that this strategy has drawbacks. A mortgage imposes forced savings discipline through regular monthly payments, while a brokerage account offers no such structure. Stock investments also carry more volatility and other risks, leaving younger investors with less certainty.
The S&P 500's record close is the latest sign of strength in U.S. markets after worries about Iran and artificial intelligence eased, the report said. The index, which tracks the largest U.S. companies, had fallen sharply during the tech selloff before recovering.