The tech-laden Nasdaq composite index climbed 63 points, and hit a new intraday record high of 5143.32. That topped its previous all-time high of 5132.52, which was set back in March 10, 2000.
The broad-based rally encompassed all ten S&P sectors, with health care leading the way, along with some technology standouts
Todd Rosenbluth, director of ETF & mutual fund research at S&P Capital IQ, is firmly bullish on semiconductors right now.
"These are S&P 500 index companies where the fundamentals are improving, driven in part by Chinese demand and wireless," Rosenbluth said.
"We also expect there will be greater consolidation in the industry."
Another way investors can play the chip sector through the iShares PHLX Semiconductor, a market capitalization-weighted index composed of companies involved in the design, distribution, manufacture, and sale of semiconductors. "We think this is a very liquid ETF with a focus on large cap semis," said Rosenbluth.
One other sector Rosenbluth likes is health care, which has seen a lot of recent mergers and acquisition activity. "Health care has strong fundamentals in pharma and biotech, a winning combination." He currently has strong buys on Gilead Sciences and Celgene and a buy on Johnson & Johnson.
Rosenbluth also suggest playing this sector via Health Care Select Sector SPDR Fund because of its "cheap" exposure to U.S. companies in the health care equipment and supply, health care provider and services, biotechnology and pharmaceutical industries.