All three major US stock indexes closed at record highs again on Tuesday, lifted by Nvidia after it announced plans to build artificial intelligence supercomputers for the US Department of Energy, and by optimism ahead of key tech earnings this week.
The S&P 500 rose 0.23% to close at 6,890, having topped 6,900 for the first time during intraday trade.
The Nasdaq Composite gained 0.8% to 23,827, while the Dow Jones Industrial Average added 0.3%, to 47,706. All three major indices notched new intraday highs.
Nvidia CEO Jensen Huang said the chipmaker will build seven supercomputers for the US energy department and has $US500 billion worth of bookings for its AI chips. Nvidia also unveiled new details of a partnership with Finnish telecom equipment maker Nokia to target the AI-driven communications market.
Microsoft shares also rose after the company struck a deal enabling OpenAI to restructure into a public benefit corporation, giving Microsoft a 27% stake in the ChatGPT maker.
Here’s how the S&P 500 index tracked on Tuesday (US time):
S&P 500 chart for Tuesday Oct 28
Tech, consumer cyclicals and basic materials were the biggest winners on the benchmark index:
S&P 500 sector summary (LSEG)
Here’s a look at the top and bottom movers on the S&P 500:
S&P 500 top and bottom movers (LSEG)
Investors are awaiting quarterly results this week from Apple, Microsoft, Alphabet, Amazon and Meta Platforms, and are keen for more detail on the tech giants’ AI spending plans.
“Momentum and earnings are pushing the market higher,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York, adding there was also “enthusiasm about Trump’s Asian trip.”
“Earnings have been good,” he said. “Of course, we’re waiting for the big tech stocks.”
— with reporting from Reuters