The S&P 500 and Nasdaq closed at record highs on Tuesday, driven by Nvidia’s 2.5% gain after Federal Reserve Chair Jerome Powell suggested that positive economic data could justify rate cuts. This marks the Nasdaq’s sixth consecutive record close and the S&P 500’s fifth. Despite mixed performances from other tech stocks, optimism around AI growth boosted market sentiment.
Powell stated that inflation is improving but did not signal any specific timing for future rate cuts. Markets anticipate a 72% chance of a 25 basis point cut by September. Upcoming inflation data and second-quarter earnings reports are expected to further influence market trends.
