S&P 500 and Nasdaq Hit Record Highs Amid Mixed Market Moves

The S&P 500 and Nasdaq Composite reached record highs on Tuesday, with the S&P 500 crossing the 7,800-point mark for the first time. The S&P 500 gained 0.58%, while the Nasdaq Composite advanced 0.45%. The Dow Jones Industrial Average also rose, adding 0.49%. U.S. Treasury Secretary Bessent reassured investors that the government's debt burden is manageable, citing economic growth and spending constraints as key factors that will soon alter the borrowing trajectory.

Memory chip stocks experienced significant declines, with SK Hynix dropping over 6%, Seagate Technology down 9%, and Western Digital shedding nearly 7%. Meanwhile, the Nasdaq China Golden Dragon Index closed up 0.3%, though Alibaba fell more than 1%. In Europe, major indices like the DAX 30 and FTSE 100 posted gains, while in Asia, the Nikkei 225 rose 1.05% and the KOSPI fell 0.89%.

In currency markets, the U.S. dollar index fell 0.33%, with the euro and British pound gaining against the dollar. Bitcoin hovered near $85,000, while Ethereum fell 0.69%. Crude oil futures saw modest gains, with Brent crude rising 0.26%. Fed officials discussed potential rate hikes due to persistent AI-driven demand for chips and other economic pressures, while JPMorgan CEO Jamie Dimon warned that AI models like Mythos have significantly increased cybersecurity risks.

The Bank of Canada may raise rates only twice, with the first move likely delayed until early next year, according to Central 1 Credit Union. Meanwhile, SpaceX plans to raise $40 billion to purchase NVIDIA chips, with $10 billion through bank loans and $30 billion through other means.