S&P 500, Nasdaq Set Fresh Records as Dow Rises

U.S. stocks pushed higher Tuesday, with the S&P 500 up about 0.5%–0.7% and touching an intraday high above 7,830. The Nasdaq Composite added roughly 0.6% after ending Monday at a record, while the Dow Jones Industrial Average gained around 0.4% but remained below its August all-time high. The move builds on Monday's tech-led advance, when Nvidia, Microsoft and other megacaps lifted the Nasdaq to another record despite unusually elevated bond yields. Energy prices provided a fresh tailwind. Brent crude slid more than 2% to about $98 a barrel, easing concerns that higher oil could keep U.S. inflation elevated for longer. The pullback also helped relieve pressure in Treasurys after yields climbed to multi-decade highs earlier in the week. The 10-year Treasury yield retreated after hitting roughly 5.31% on Monday, a level that had weighed on richly valued growth shares. Higher yields typically reduce the present value of future earnings, a particular headwind for technology stocks. Even so, the Nasdaq has continued setting records as profit growth tied to AI-focused companies has, so far, outweighed valuation pressure. Investors are also gearing up for another strong earnings season. Analysts expect third-quarter S&P 500 profits to rise about 27% from a year earlier, with Nvidia, Meta, Alphabet and other AI-related firms accounting for a sizable share of the increase. That outlook has kept the AI-driven rally intact, even as market leadership remains narrow and the Dow continues to lag.