The S&P 500 and Nasdaq reached new highs on Tuesday. The 10-year Treasury yield eased to 5.28%, while oil fell more than 2% ahead of the next corporate earnings season.
The S&P 500 gained 0.56% to 7,817.12, while the Nasdaq Composite rose 0.63% to 27,650.92. The Dow Jones Industrial Average advanced 0.48% to 51,511.59. The indexes were supported by Treasury yields retreating from multi-year peaks and lower oil prices, as investors also looked ahead to quarterly earnings reports.
The yield on the 10-year Treasury fell 2.1 basis points to 5.28%, while the 30-year yield held around 5.66%. Nine of the S&P 500’s 11 sectors advanced, led by utilities and health care. The energy sector fell 0.6%.
Most of the so-called Magnificent Seven stocks edged higher early in the session. Meta, Tesla and Amazon gained, while Apple and Alphabet each fell about 0.2%. Nvidia rose 1.2%, bringing the market value of the world’s most valuable company closer to $6 trillion.
Oil prices dropped more than 2%. CNN Brasil reported that resilient Middle Eastern crude exports and the G7’s release of emergency reserves eased concerns about supply. Robert Pavlik, a senior portfolio manager at Dakota Wealth, said information technology appeared to have the strongest performance prospects, while warning that higher energy costs could weigh on consumer spending.
Third-quarter earnings season is due to begin next week. Analysts expect S&P 500 companies’ profits to rise by more than 30% year over year on average, largely on the strength of artificial-intelligence-related stocks, according to LSEG data.