S&P 500 record close

The S&P 500 rose to a fresh all-time intraday high on Tuesday, boosted by gains in key technology names as well as declines in Treasury yields.

Index performance

The broad market index climbed 0.58% for a record close of 7,818.93, while the Dow Jones Industrial Average gained 253.38 points, or 0.49%, to end at 51,521.28.

Tech sector surge

The Nasdaq Composite added 0.45% and closed at a record 27,599.79. The tech-heavy index hit a new all-time high during the session as well.

Chipmaker gains

Marvell Technology popped 5.8%, and Advanced Micro Devices gained nearly 3%, as investors grew optimistic about the companies' outlooks.

Investor sentiment

Stephen Kolano, chief investment officer at Integrated Financial Partners, said, 'Everyone's like markets are up. AI is the place to be.'

“Everyone's like markets are up. AI is the place to be”

Treasury yields drop

The benchmark 10-year Treasury note yield fell 3 basis points to 5.281%, while the 30-year bond yield was last little changed at 5.655%.

Oil prices stable

Brent crude traded 0.26% higher to settle at $100.58 per barrel. West Texas Intermediate futures rose just 0.01% to $89.44 a barrel.

Market outlook

Kolano added, 'People are looking for where might there be some source of contagion that starts to spread, but right now, it's all staying well contained and just being dominated by the momentum, the earnings growth, the investment coming from artificial intelligence.'

“People are looking for where might there be some source of contagion that starts to spread, but right now, it's all staying well contained and just being dominated by the momentum, the earnings growth, the investment coming from artificial intelligence”

Federal Reserve minutes

Traders are now looking ahead to the Federal Reserve's minutes from its September meeting due Wednesday, which could shed some light on policymakers' move to raise rates.

Ray Dalio on Treasurys

Ray Dalio warned that the Treasury market could face more disruption this year if demand from China and Japan pulls back.

“The Treasury market could face more disruption this year if demand from China and Japan pulls back”

Dalio's market concerns

Dalio said, 'They are starting to get squeezed,' referring to Japan's economic policy changes and China's accumulation habits.

“They are starting to get squeezed”

AI trade market reaction

Michael Burry described the stock market as being in its 'first stage of grief, denial' over the AI trade, lasting 6-9 months.

“The stock market is quite obviously in its first stage of grief, denial. Per 2000 and 2008, this stage lasts 6-9 months”

AI stock performance

Ciena jumped 11.3%, Nebius Group climbed 9.5%, Astera Labs by 7.5% and CoreWeave was ahead 4% as enthusiasm returned to AI stocks.

Moderna and Novavax

Moderna traded 6% lower, while Novavax declined by 10% despite being up 130% and 20% over the past three months.

SpaceX bullishness

Goldman Sachs put a $230 price target and a buy rating on SpaceX, implying upside of 44.7% from Monday's close.

Small caps lag

Small-cap stocks underperformed as the Russell 2000 index was last trading just above the flatline while the S&P 500 rose 0.8%.

Skydance deal

David Ellison's Paramount Skydance closed on its $110 billion purchase of Warner Bros. Discovery, ending a year-long takeover struggle.

“David Ellison's Paramount Skydance closed on its $110 billion purchase of Warner Bros. Discovery Tuesday, putting an end to a year-long takeover struggle that eventually entangled the future of film and television production in southern California, CBS News, CNN and settlement of a suit by attorneys generals from 12 states”

Bond yields peak

Apollo Global Management chief economist Torsten Slok wrote bond yields may peak in the next month due to Middle East developments and oil prices.

Marvell revenue outlook

Marvell Technology expects revenue for fiscal 2028 to come in at $20 billion, above the $18.17 billion analysts polled.