Wall Street pushed further into record territory Tuesday as enthusiasm surrounding artificial intelligence continued to lift major technology stocks, while falling oil prices and Treasury yields gave investors another reason to keep buying.
The S&P 500 briefly reached an intraday record Tuesday morning, while the Nasdaq Composite extended its record-setting run from Monday. Nvidia remained one of the market’s biggest drivers, with the AI chipmaker’s valuation approaching $6 trillion as investors continue pouring money into companies positioned to benefit from the artificial intelligence boom.
The rally is spreading beyond chipmakers. Constellation Energy shares surged more than 11% Tuesday morning after Google announced a sweeping long-term power agreement that will support upgrades adding 890 megawatts of new nuclear generating capacity. The deal underscores how investor enthusiasm around AI is increasingly extending into the energy and infrastructure companies needed to power massive data centers.
Investors are also weighing signs of a cooling labor market against lingering inflation pressures. September’s weaker-than-expected employment report has strengthened expectations that the Federal Reserve could keep interest rates unchanged at its October meeting, while lower Treasury yields can make stocks—particularly high-growth technology shares—more attractive.
Falling oil prices provided another boost Tuesday by easing some concerns about inflation and business costs. Still, Wall Street’s climb leaves stock valuations elevated, making upcoming corporate earnings and economic reports increasingly important in determining whether the record-setting momentum can continue.
The Readovia Lens
The AI boom is increasingly influencing far more than technology stocks. Chipmakers, utilities, nuclear-power companies and data-center infrastructure businesses are becoming part of the same investment story as the enormous cost of building and powering artificial intelligence reshapes where money is flowing across the market.
