US Stocks Hit Record Highs on Strong Corporate Earnings

The U.S. stock market reached a new record high, with the S&P 500 climbing 0.6% on Tuesday. Despite ongoing challenges like war, high inflation, and rising bond yields, the index has surged 23% since its low in late March. The Dow Jones Industrial Average gained 253 points, or 0.5%, while the Nasdaq composite added 0.4% to its own all-time high set the day before.

Companies continue to report strong profits, which are a key driver of the market’s resilience. Lamb Weston, a frozen food company, reported better-than-expected earnings and raised its full-year profit forecast, sending its stock up 7.5%. Analysts predict that S&P 500 companies will show nearly 30% earnings growth compared to last year, marking the third straight quarter of over 25% growth.

AI stocks have been a major force behind the market’s record highs, with Nvidia rising 28.3% this year. Constellation Energy jumped 12.2% after announcing a deal to supply electricity to Google, highlighting the growing demand for power due to AI data centers. Meanwhile, Option Care Health soared 32.6% following news of a $5.8 billion acquisition.

Bond yields eased slightly, with the 10-year Treasury yield dropping to 5.28% from 5.31%. Oil prices also stabilized, with Brent crude settling at $100.58 per barrel. International markets saw mixed results, with gains in Europe and Asia, while South Korea’s Kospi fell 0.9%.