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The S&P 500 hit a fresh record on Tuesday as investors stepped further into the artificial intelligence trade a day before the Federal Reserve announces its interest rate decision.
The Dow Jones gained 161.78 Tuesday to 47,706.37.
The much-broader index acquired 15.73 points to 6,890.89.
The NASDAQ gained 190.04 points to 23,827.49.
The market’s gains were led by Nvidia, which climbed 5% and notched a new high. The AI chip darling made a series of announcements Tuesday at its GTC conference, including its partnership with Finnish company Nokia.
Nvidia will take a $1-billion stake in Nokia, which said it will use the proceeds from that share investment to fund in part its AI plans. Other AI-related names like Broadcom saw a boost as well.
Microsoft was 2% higher heading into its earnings results after the bell on Wednesday. The stock, along with Apple, crossed $4 trillion in value during Tuesday’s session. On Tuesday, OpenAI announced it has completed its recapitalization, a move that sets up Microsoft for a windfall with it holding roughly 27% of the for-profit arm OpenAI Group PBC.
Shares of United Parcel Service grew 8%, and Wayfair gained 23.7%, after their results for the third quarter both exceeded Wall Street’s expectations.
PayPal, which saw its latest quarterly results top analyst estimates on the top and bottom lines as well, increased 3.9% after the company reported that it has partnered with OpenAI to have its digital wallet embedded into ChatGPT, effectively allowing users to pay for items found through the artificial intelligence tool.
So far, the earnings season is off to a strong start. About one-third of S&P 500 companies have reported. Of those, 83% have beaten earnings expectations,
Amazon announced it will begin layoffs on Tuesday that will amount to the largest cuts to its workforce in the company’s history, adding to the slew of job cuts seen in the tech industry this year. Shares in Amazon gained 1%.
Prices for the 10-year Treasury inched up, lowering yields to 3.98% from Monday’s 3.99%. Treasury prices and yields move in opposite directions.
Oil prices ditched $1.40 to $59.91 U.S. a barrel.
Gold prices backtracked $44.40 to $3,975.30 U.S. an ounce.
