S&P 500 reaches new all-time intraday high as AI demand powers tech gains
- stocks rallied during midday trading on Tuesday, pushing the S&P 500 to a new all-time intraday high above 7830.
- The market advance was overwhelmingly driven by technology stocks riding a fresh wave of enthusiasm for artificial intelligence.
- Goldman Sachs analysts noted in a Friday research note that AI infrastructure stocks are expected to drive more than half of S&P 500 earnings per share growth in...
U.S. stocks rallied during midday trading on Tuesday, pushing the S&P 500 to a new all-time intraday high above 7830. The benchmark index rose about 0.8%, putting it on track to eclipse its previous closing high set in mid-August. The Dow industrials and the Nasdaq Composite also advanced, with the tech-heavy Nasdaq heading toward its second consecutive record high.
Artificial Intelligence Demand Powers Technology Sector Gains
The market advance was overwhelmingly driven by technology stocks riding a fresh wave of enthusiasm for artificial intelligence. Nvidia Corp. shares climbed, moving the world’s largest public company closer to a $6 trillion market value milestone. Other major technology names also traded higher, including Broadcom, Meta Platforms, Microsoft, Amazon, and Tesla, alongside a surge of over 7% in SpaceX shares.
Goldman Sachs analysts noted in a Friday research note that AI infrastructure stocks are expected to drive more than half of S&P 500 earnings per share growth in the third quarter. FactSet senior earnings analyst John Butters said that corporate and analyst earnings outlooks for the quarter have been more optimistic than normal.
Treasury Yields Stabilize Following Multi-Year Highs
Torsten Slok of Apollo said that several forces suggest rates may peak within the next month. Slok noted that approaching midterm elections raise the odds of a Middle East deal that would lower oil prices and ease upward pressure on interest rates.
Oil Prices Decline As Traders Weigh Supply Risks
Markets are also watching for the release of U.S. Federal Open Market Committee meeting minutes scheduled for Wednesday, alongside the formal kickoff of third-quarter earnings season next week with reports from the country’s largest banks.