S&P 500 marks first close above 5,000 amid megacap rally

(Reuters) -- The S&P 500 closed above 5,000 for the first time on Friday and Nasdaq briefly traded above 16,000, with boosts from megacaps and chip stocks, including Nvidia, as investors bet on artificial intelligence technology and eyed strong earnings data.

Nvidia finished up 3.6% and hit a record high after Reuters reported it was building a new business unit focused on designing bespoke chips for cloud computing firms and others, including advanced artificial intelligence (AI) processors.