S&P 500 reaches record high as Nvidia nears $6 trillion milestone

The S&P 500 reached a new record high on Tuesday, extending its winning streak to four consecutive days. The index gained 0.6% in early trading, supported by strong technology stocks, lower oil prices, and optimism about the upcoming earnings season. The Nasdaq Composite also climbed 0.7%, hitting a record high for the second time this week, while the Russell 2000 index rose 0.5%.

Tech stocks, including Marvell, Palo Alto Networks, and Dell Technologies, led the gains. Nvidia, the world’s largest public company, came closer to reaching a $6 trillion market value. Other trillion-dollar tech stocks like Microsoft, Amazon, SpaceX, Broadcom, and Tesla also saw gains.

Investors are eagerly awaiting the start of the third-quarter earnings season, with major banks set to report next week. Analysts at FactSet noted increased optimism in earnings outlooks. Goldman Sachs analysts highlighted that AI infrastructure stocks, particularly Nvidia and Micron, are expected to drive over half of the S&P 500’s earnings growth this quarter.

Meanwhile, the energy sector underperformed due to a drop in crude oil prices. Brent oil futures fell more than 2% to below $99 per barrel, while U.S. crude oil dropped 1.5% to under $88 per barrel. The decline followed reports that Saudi Arabia’s key pipeline was operating normally after recent attacks. Analysts at ING noted ongoing market nervousness about potential supply disruptions in the region.

Treasury yields also declined slightly after hitting fresh 24-year highs on Monday. The 10-year yield stood at over 5.29%, while the 30-year Treasury was flat at 5.66%. Apollo’s Torsten Slok suggested that rates may peak within the next month, citing potential political developments that could lower oil prices.