The S&P 500 and the Nasdaq Composite reached record highs on Tuesday, with the S&P 500 adding 0.6% to settle at 7,818.93 and the Nasdaq gaining 0.5% to 27,599.79. The Nasdaq marked its fifth consecutive day of gains, while the S&P 500 extended its rally to a fourth straight session. The Dow Jones Industrial Average rose 0.5% to 51,521.28, continuing its upward trend for a fourth session.
Market activity was driven by declining Treasury yields ahead of the Federal Reserve's release of meeting minutes scheduled for Wednesday. The 10-year Treasury yield dropped 3.2 basis points to 5.28%, while the two-year rate fell 3.8 basis points to 4.80%. The upcoming minutes from the September meeting are expected to offer insights into the monetary policy trajectory following policymakers' decision to increase rates by 25 basis points, the first hike in over three years aimed at curbing inflation.
| Index | Close | Change |
|---|---|---|
| S&P 500 | 7,818.93 | +0.6% |
| Nasdaq Composite | 27,599.79 | +0.5% |
| Dow Jones Industrial Average | 51,521.28 | +0.5% |
Traders are currently pricing in an 81% probability that the Federal Reserve will keep its benchmark rate steady later this month, according to the CME FedWatch tool. In economic data released Tuesday, the US trade deficit widened in August to its highest level since March 2025 as imports reached a record high. Grace Zwemmer, US economist at Oxford Economics, attributed the widening deficit in part to a surge in capital goods imports driven by artificial intelligence. Zwemmer noted that while net trade is expected to drag on third-quarter gross domestic product, roughly half of that impact will be offset by a contribution from equipment spending.
In energy markets, Brent crude oil rose 0.7% to $100.99 a barrel, and West Texas Intermediate increased 0.4% to $89.81. Bloomberg News reported that attacks on tankers in the Strait of Hormuz have intensified this month, even as oil shipments through the chokepoint recover toward pre-Iran war levels, citing data from UK Maritime Trade Operations.
Equity moves were led by utilities and major retailers, with all sectors ending in the green except healthcare. Walmart and Home Depot shares were among the top Dow gainers, both up 2%, while Amazon shares also advanced. Constellation Energy shares jumped 12% after the company agreed to collaborate with Alphabet's Google on 3,590 megawatts of power to meet demand and improve grid reliability. Alphabet's class A and C shares edged higher in response.
In other corporate news, drug distributor McKesson and private investment firm Clayton Dubilier & Rice agreed to acquire Option Care Health in a deal valued at approximately $5.8 billion. Option Care's shares surged 33%, while McKesson shares added 0.6%. Precious metals also gained ground, with spot gold rising 0.7% to $4,168.69 per troy ounce and silver climbing 0.8% to $61.81 per ounce.