On Tuesday, the benchmark S&P 500 index surged to an intraday high of 7,817.13 points, surpassing its previous record of 7,816.7 set in August. The rally was powered by growing optimism around artificial‑intelligence (AI) investments and expectations of solid corporate earnings across the technology sector.
Key market moves
At 09:31 a.m. ET, the Dow Jones Industrial Average rose 164.45 points, or 0.32%, to 51,432.35. The Nasdaq Composite climbed 162.58 points, or 0.59%, to 27,639.89. The S&P 500 itself gained 37.77 points, or 0.48%, to 7,811.72, before peaking at the record level later in the session.
Drivers behind the surge
Investors cited renewed confidence in the AI trade, with several megacap and growth stocks ticking higher as the market digested recent earnings reports and forward guidance. At the same time, government bond yields eased from multi‑year highs, reducing pressure on equity valuations. Lower oil prices also contributed to a more favorable backdrop for corporate profitability.
Broader market context
Despite higher energy costs and a volatile summer in bond markets that raised concerns about tighter monetary policy, the overall sentiment remains bullish. The bull market that began in October 2022 continues to gain momentum, buoyed by technology‑heavy indices and strong earnings expectations.
Outlook
Analysts note that while the AI sector remains a key catalyst, the market will also be watching upcoming earnings releases and any shifts in Federal Reserve policy. Continued moderation in bond yields and stable oil prices could further support equity gains.
Reporting by Shashwat Chauhan and Tharuniyaa Lakshmi in Bengaluru; editing by Shinjini Ganguli.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
