The S&P 500 Index closed up 0.81% on Tuesday, marking a new all-time high, alongside the Nasdaq 100’s 1.31% gain. The rally was primarily driven by a surge in technology stocks, notably Intel, which rose over 12% after Apple explored partnerships for processor production in the U.S. Meanwhile, WTI crude oil prices fell more than 3%, alleviating some geopolitical concerns and contributing to the broader market’s strength.

This upward momentum comes despite mixed economic data, with new home sales and job openings exceeding expectations, while the ISM services index fell short. The widening trade deficit, however, was narrower than anticipated, suggesting some resilience in the economy. The earnings season has been positive, with 83% of S&P 500 companies beating estimates, projecting a 12% year-over-year increase in Q1 earnings, although excluding tech, growth is only about 3%.

Market professionals should note that the current environment, characterized by strong tech performance and easing oil prices, may provide further support for equity valuations, particularly as earnings continue to exceed expectations.

Source: nasdaq.com