US stocks ended higher on Tuesday, with the S&P 500 and Nasdaq Composite reaching record closing highs as technology stocks gained and Treasury yields eased from multi-year peaks.
The S&P 500 rose 0.60% to 7,820.47, while the Nasdaq Composite gained 0.46% to 27,604.74.
The Dow Jones Industrial Average advanced 0.49% to 51,531.57.
Falling Treasury yields and steadier oil prices helped ease some concerns that have weighed on markets in recent weeks.
AI stocks lead Wall Street higher
Chipmakers led gains as investors remained focused on the outlook for artificial intelligence and related infrastructure spending.
Marvell Technology climbed after the chip designer raised its 2028 revenue forecast, citing strong demand for data centre chips. AMD also advanced after CEO Lisa Su said the company plans to substantially increase chip supply in 2027 to meet growing AI demand.
Broadcom gained as the semiconductor sector continued to support the broader market. The Philadelphia Semiconductor Index also moved higher.
Other stocks advanced on company-specific developments.
Constellation Energy jumped after Alphabet entered into a 3,590-megawatt power deal with the company.
Option Care Health surged after McKesson and private equity firm Clayton Dubilier & Rice agreed to acquire the infusion therapy provider in a deal valued at about $5.8 billion, including debt.
Treasury yields ease as oil prices stabilize
The decline in Treasury yields provided additional support for equities. The 10-year Treasury yield fell more than four basis points to 5.262%, while the 30-year yield declined more than three basis points to 5.631%.
Both yields had reached levels not seen since 2002 on Monday.
Oil prices were little changed on Tuesday, helping reduce some concerns about energy-driven inflation. Brent crude settled 0.26% higher at $100.58 a barrel, while West Texas Intermediate futures rose 0.01% to $89.44.
Supply concerns have eased after the Group of Seven agreed to release emergency diesel and crude stockpiles.
Markets have also been monitoring oil prices because higher energy costs could contribute to broader inflation pressures.
Financial markets are now pricing in a lower probability of another Federal Reserve rate hike at the central bank’s next meeting.
Earnings season moves into focus
Investors are also turning their attention to the third-quarter earnings season, which begins next week. Several major financial companies are scheduled to report results next Tuesday.
Analysts expect aggregate S&P 500 earnings to rise 30.6% year over year in the July-to-September period, according to LSEG.
Energy earnings are expected to increase 114.7%, while technology earnings are forecast to rise 66.5%.
Markets are also awaiting the Federal Reserve’s September meeting minutes, due Wednesday.
The release could provide further insight into policymakers’ decision to raise interest rates and their outlook for future monetary policy.
The combination of strong AI-related investment, easing Treasury yields, and more stable oil prices has allowed investors to focus increasingly on corporate earnings and growth prospects.