The S&P 500 reached a historic milestone on Tuesday, topping 7,800 for the first time. The index rose 0.6 percent, exceeding its previous peak set in August and bringing its gain for the year to more than 14 percent. The Nasdaq also closed at a record high, increasing by 0.45 percent, while the Dow Jones Industrial Average climbed 0.49 percent, or 253.14 points, to end at 51,521.04.
The rally was driven by gains in technology stocks and AI chipmakers, buoyed by resilient corporate profits and hopes for a positive earnings season. Additionally, a retreat in oil prices and a dip in US treasury yields provided support, helping the market overcome months of shocks.
Investors remained optimistic despite signs of instability in the US economy and longer-dated Treasury yields hovering near multi-decade highs. This tech-led momentum has extended to international markets, with Asian stocks set to open higher as investors largely shrugged off bond yield concerns.