US stocks rose on Tuesday, with the S&P 500 and Nasdaq Composite hitting fresh intraday records as falling oil prices and Treasury yields eased pressure on equities.
The S&P 500 was up 0.5% in early trading after reaching a new all-time intraday high. The Nasdaq Composite also gained about 0.5% and touched a record level, while the Dow Jones Industrial Average advanced around 205 points, or 0.4%.
At 9:54 a.m. EDT, the Dow was up 334.17 points, or 0.65%, at 51,602.07. The S&P 500 gained 47.65 points, or 0.61%, to 7,821.60, while the Nasdaq Composite rose 168.281 points, or 0.61%, to 27,645.591.
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Chip Stocks Lead Gains
Technology and semiconductor stocks were among the key drivers of the market’s advance. Marvell Technology shares jumped about 7%, while Nvidia and Broadcom gained around 1% each.
The gains in chipmakers helped lift the broader technology sector as investors looked for support from large-cap technology names amid easing pressure from the bond market.
Treasury yields also moved lower after rising sharply in recent sessions. The 10-year Treasury yield fell two basis points to 5.29%, while the two-year yield declined three basis points to 4.802%.
The 10-year yield had climbed to levels not seen since 2002 on Monday, adding to concerns about borrowing costs and the outlook for equities.
Morgan Stanley Wealth Management investment chief Lisa Shalett said bond markets have remained volatile over the past six weeks. In a note to clients, she pointed to factors including a potentially new Federal Reserve policy framework, economic growth and elevated oil prices amid the continuing Middle East conflict.
“Nevertheless, while intraday implied volatility has risen, the six-week stretch has not reached the extremes that catalyzed the 2022 equity bear market,” Shalett wrote.
Oil Prices Fall
Lower crude prices provided another tailwind for stocks. Brent crude traded about 2% lower at around $98 a barrel, while West Texas Intermediate futures fell roughly 1% to around $87 a barrel.
A decline in oil prices can ease concerns over inflation and the potential impact of higher energy costs on corporate earnings and consumer spending, giving investors some relief.
Fed Minutes In Focus
Investors are now turning their attention to the Federal Reserve’s September meeting minutes, due on Wednesday. The minutes could provide additional clues about policymakers’ thinking and the path for interest rates.
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Markets have been closely watching the Fed’s rate outlook as higher yields have increased the pressure on equity valuations, particularly in technology stocks.
For now, however, the combination of lower oil prices, easing Treasury yields and strength in chip stocks has provided support to Wall Street, pushing the S&P 500 and Nasdaq into record territory.