S&P 500, Nasdaq close at records as bond yields ease
The S&P 500 and the Nasdaq closed at record highs on Tuesday as bond yields eased and oil prices steadied. The S&P 500 rose 0.6% to 7,820, its first record close since August, and the Nasdaq gained 0.5% to 27,605 for a second straight record, Reuters reported. The Dow added about 264 points.
The S&P 500 and the Nasdaq closed at record highs on Tuesday, as government bond yields eased from multi-year peaks and oil prices steadied, giving investors a break from weeks of worry about interest rates.
The S&P 500 gained 0.6% to end at 7,820.47, its first record close since August, Reuters reported, citing early data. The Nasdaq Composite rose 0.46% to 27,604.74, its second record close in a row. The Dow Jones Industrial Average climbed 264 points, or 0.49%, to 51,531.57. Kiplinger noted the S&P 500 has now risen four days in a row, while the Dow is still about 6% below its own peak.
Power and chip stocks led much of the day. Constellation Energy jumped about 12% after Google signed a long-term deal to buy power from its nuclear plants, Kiplinger reported. Earlier in the session, Marvell Technology rose 6.5% after raising its 2028 sales forecast, and AMD climbed 3.6% on plans to make far more chips in 2027, Reuters said. Nvidia edged up and now sits close to a $6 trillion value.
Lower bond yields gave stocks room to run. The 10-year Treasury yield fell about 0.03 percentage point to 5.28%, Kiplinger reported, a day after it hit its highest level since 2002. That rate guides what families pay for mortgages and car loans. Oil steadied after falling earlier in the day, and U.S. crude ended up 0.4% at about $89.80 a barrel.
Interest rates have been the market's biggest worry, since yields jumped this summer on fears about heavy government borrowing and stubborn inflation. Yet stocks and yields have risen together in recent weeks, the Wall Street Journal noted, as excitement over artificial intelligence kept buyers coming into a bull market that began in October 2022.
Next up, minutes from the Federal Reserve's September meeting come out Wednesday, and third-quarter earnings season starts next week. Investors will watch whether company profits can keep up with the high hopes built into record prices.
What we know: The S&P 500 and Nasdaq both closed at record highs as yields eased.
What we don't: Whether the Fed minutes or earnings reports will keep the rally going.
Where outlets agree Reuters and Kiplinger both report the S&P 500 and Nasdaq closed at record highs Tuesday as Treasury yields eased.
Where they differ Reuters ties the rally to easing yields and steadier oil, while a strategist quoted by Kiplinger points to the fourth quarter's seasonal strength and next month's midterm elections.