S&P 500 Hits Record 5850 on AI and Healthcare Rally
S&P closed at all-time high.
The S&P 500 closed at a fresh all-time high of 5,850 on Tuesday, gaining 1.1% in a broad-based rally driven by artificial intelligence infrastructure stocks and a surge in healthcare names on positive drug trial data. The Nasdaq Composite rose 1.4% while the Dow Jones Industrial Average added 0.8%.
Nvidia led the technology advance with a 4.2% gain ahead of its GTC conference, while Microsoft and Alphabet each added over 2% on growing enterprise AI adoption metrics. In healthcare, Eli Lilly surged 5.8% after reporting that its next-generation GLP-1 obesity drug achieved 28% weight loss in Phase 3 trials, significantly exceeding Novo Nordisk's Wegovy results.
Traders are now pricing in a 75% probability of a Federal Reserve rate cut in September, up from 55% a week ago, after the latest core PCE inflation reading moderated to 2.4% year-on-year. Treasury yields declined, with the 10-year benchmark falling to 4.15%. Market breadth was notably strong, with over 400 S&P 500 constituents advancing, suggesting the rally is broadening beyond the 'Magnificent Seven' mega-cap technology stocks that drove much of last year's gains.
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