The NASDAQ Composite and the S&P 500 indexes reached record closing highs on Tuesday, continuing a positive trend in the US stock markets. This rise was supported by easing Treasury yields and strong performances from major technology companies, known as the "Magnificent Seven." The Dow Jones Industrial Average also posted gains, reflecting broad market optimism.
- The NASDAQ advanced 0.45% to close at 27,599.79.
- The S&P 500 climbed 0.58% to 7,818.93.
- The Dow Jones Industrial Average gained 0.49%, closing at 51,521.28.
- Six of the "Magnificent Seven" stocks rose, with Meta Platforms being the exception.
- Marvell Technology raised its revenue guidance, boosting its shares by 5.81%.
- Advanced Micro Devices (AMD) shares increased by 2.8% due to AI-driven demand optimism.
- US Treasury yields declined, with the 10-year yield falling to 5.269%.
What caused the NASDAQ and S&P 500 to hit record highs?
The main factors behind the record highs were easing US Treasury yields and strong performances by leading technology companies. Lower yields make stocks more attractive to investors, encouraging buying. Additionally, positive earnings forecasts and new business deals from major firms helped boost investor confidence.
Which major stocks contributed to the market gains?
Six of the "Magnificent Seven" stocks—Alphabet, Amazon, Apple, Microsoft, Tesla, and Nvidia—saw their share prices rise. Meta Platforms was the only one among them that did not increase. Marvell Technology also contributed significantly after raising its revenue guidance for the 2027-28 financial year.
How did Marvell Technology and AMD perform?
Marvell Technology’s shares rose 5.81% following an upward revision of its revenue forecast. CEO Matt Murphy announced expectations of approximately $20 billion in total revenue for fiscal year 2028, representing a 67% year-over-year growth, up from the previous $18 billion projection.
Advanced Micro Devices (AMD) closed 2.8% higher at $649.42 per share. This increase was driven by growing optimism about demand for CPUs fueled by the rising popularity of artificial intelligence (AI) agents like Meta Muse and OpenAI's Dots. Analysts have raised AMD’s price target based on this outlook.
What new business deals were announced?
Alphabet announced a 20-year nuclear power deal with Constellation Energy. Under this agreement, Alphabet will purchase 890 megawatts of nuclear energy to support its expanding AI capabilities. This deal reflects the company’s commitment to sustainable energy sources while advancing technology development.
How did other stocks and sectors perform?
Several other companies closed with gains, including Constellation Energy Corp, Astera Labs, Cisco Systems, Broadcom, Nike, Walmart, Ciena Corporation, Vistra Corp, NRG Energy, EMCOR Group, Quanta Services, and Royal Caribbean Cruises. These gains indicate broad strength across different sectors.
What happened with US Treasury yields and commodities?
The 10-year US Treasury yield declined to 5.269%, while the 30-year yield fell slightly to 5.659%. Lower yields generally encourage investment in stocks. On the commodities front, Brent Crude oil rose 0.82% to $101.42 per barrel, and West Texas Intermediate (WTI) increased 0.93% to $90.27 per barrel.
What is the status of the US trade deficit?
The US trade deficit widened in August 2026, reaching $105.6 billion. This is the highest level since March 2025, when the deficit was $132.98 billion. A widening trade deficit can impact the economy by affecting currency values and trade balances.
Frequently Asked Questions
Q: What are the "Magnificent Seven" stocks?
A: The "Magnificent Seven" refers to seven leading technology companies that have a significant impact on the stock market. These include Alphabet, Amazon, Apple, Microsoft, Tesla, Nvidia, and Meta Platforms.
Q: Why do Treasury yields affect stock prices?
A: Treasury yields represent the return on government bonds. When yields fall, bonds become less attractive compared to stocks, encouraging investors to buy stocks, which can drive stock prices higher.
Q: How does AI influence technology stock performance?
A: The growing use of artificial intelligence increases demand for advanced computer processors and software, boosting the revenues and stock prices of companies involved in AI technology development.
