S&P 500 and Nasdaq Hit New Highs as Treasury Yields Cool Off

The S and P 500 and the Nasdaq Composite set new all-time highs on Tuesday as Treasury yields pulled back from multidecade highs, extending a record-setting run powered by enthusiasm for artificial intelligence.

The S and P 500 rose about 0.7 percent in afternoon trading to an intraday record above 7,830, according to Barron’s and The Wall Street Journal. If the gains hold into the close, it would be the index’s first record close since Aug. 13 and its 28th record close of 2026, according to Dow Jones Market Data.

The Nasdaq Composite climbed 0.6 to 0.7 percent, putting the tech-heavy index on track for a second straight record close. The Nasdaq set its 23rd record high of the year on Monday. The Dow Jones Industrial Average gained 0.5 to 0.6 percent, more than 300 points, though it remains below its Aug. 5 record close of 54,349.12.

The rally came as bond markets caught a breather. The 10-year Treasury yield fell to about 5.27 percent, down roughly four basis points, after pushing above 5.35 percent on Monday for its highest level since April 2002. The 30-year yield held steady near 5.66 percent.

Oil prices were mixed. West Texas Intermediate crude edged up 0.2 percent to 89.60 dollars a barrel, while Brent crude traded near 100.60 dollars. Traders are watching tanker shipments through the Strait of Hormuz as Iran-backed Houthi rebels continue attacks on Saudi targets, according to Investopedia and The Wall Street Journal.

Several stocks stood out. Constellation Energy surged 15 percent after sealing a 20-year power purchase agreement with Alphabet, the parent of Google. Nvidia rose 0.5 percent to its third straight intraday record as it closed in on a 6 trillion dollar market capitalization. Cisco Systems gained 3 percent, while Amazon and Caterpillar rose 1 to 2 percent each, according to Investor’s Business Daily.

SpaceX shares, traded under the ticker SPCX, rose 1.5 percent, building on Monday’s 7.5 percent jump that helped Elon Musk become a trillionaire again, according to Forbes. Gold held at 4,205 dollars an ounce, while bitcoin slipped to about 85,600 dollars.

By sector, nearly everything was higher, with utilities and technology leading. Only health care finished in negative territory, Investor’s Business Daily reported.

Investors now turn to the Treasury’s 58 billion dollar auction of three-year notes on Tuesday and to the Federal Reserve’s meeting minutes for clues about the path of interest rates. With corporate earnings season approaching, markets will be watching whether profits can sustain both record stock prices and borrowing costs above 5 percent.