The Nasdaq Composite closed at a record high, helped by an afternoon rally in Big Tech groups.
The tech-heavy index added 0.8 per cent on Tuesday, surpassing its previous peak from a month ago. Every “Magnificent Seven” stock rose, with Tesla’s 3.3 gain the best performance among the group.
The S&P 500 finished 0.5 per cent higher to hit its highest closing level since the end of March. The small-cap focused Russell 2000 rose 1.1 per cent, closing at its highest level since April 1.
The advance comes ahead of a closely watched US inflation report that will be released on Wednesday morning. Economists expect that there was a slight decline in price growth in April.
“If we see a slowdown in US growth and inflation, Fed easing expectations could be pulled forward,” said Karl Schamotta, chief market strategist at Corpay. Economists put the chances of a September interest rate cut in the US at 50 per cent, according to an LSEG poll.
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