U.S. stocks closed higher on Tuesday, with major indices setting record highs for the third straight session. The S&P 500 briefly surpassed the 6,900 milestone for the first time in history before retreating slightly by the close. Market focus this week remains on tech earnings, the Federal Reserve's rate decision, and global trade developments.
The Dow Jones Industrial Average rose 161.78 points, or 0.34%, to 47,706.37. The Nasdaq Composite gained 190.04 points, or 0.80%, to 23,827.49, while the S&P 500 added 15.73 points, or 0.23%, to 6,890.89. During intraday trading, the Dow hit an all-time high of 47,943.16, the S&P 500 peaked at 6,911.30, and the Nasdaq reached 23,901.36.
Nvidia surged 4.98%, breaking above $200 per share to achieve a record high, with its market capitalization nearing $4.9 trillion.
Stocks rallied Monday as easing geopolitical tensions fueled optimism, pushing all three major indices to new closing records. The S&P 500 closed above 6,800 for the first time, while the Russell 2000 small-cap index also hit a historic peak.
Recent reports indicate that U.S.-China trade discussions held in Kuala Lumpur on October 25-26 yielded preliminary consensus on addressing mutual concerns. U.S. Treasury Secretary emphasized preparations for productive talks between leaders later this week, with the U.S. President expressing confidence in reaching an agreement.
The Federal Reserve began its two-day policy meeting Tuesday, with markets anticipating a second rate cut this year. Traders await signals from Chair Jerome Powell about potential December easing, amid concerns over labor market softness and a government data blackout caused by the ongoing shutdown.
ADP's preliminary data showed private employers added 14,250 jobs weekly in October, reversing September's decline. The payroll processor now releases delayed four-week average employment figures during the government shutdown, with Tuesday's data reflecting trends through October 11. ADP's chief economist noted these weekly reports provide unprecedented visibility into labor market dynamics during critical economic periods.
Investors are closely monitoring earnings reports from major tech firms, including Alphabet, Amazon, Apple, Meta Platforms, and Microsoft—collectively accounting for about a quarter of the S&P 500's value. The Q3 earnings season has started strongly, with analysts citing solid profits, easing inflation, dovish Fed expectations, and the upcoming U.S.-China summit as supporting market momentum.
In corporate news, Amazon announced plans to begin its largest-ever workforce reduction on Tuesday, adding to this year's wave of tech industry layoffs.
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