NEW YORK (AP) — Tesla’s surge pushed Wall Street to new records. The S&P 500 climbed 0.6% to surpass its previous all-time high. The Dow Jones Industrial Average gained 0.4%, while the Nasdaq composite rose 0.8% from its own record. Tesla’s strong sales report for the spring exceeded analysts’ expectations, driving its stock higher. Treasury yields eased after the Federal Reserve head mentioned positive progress on inflation, raising hopes for potential interest rate cuts later this year. Crude oil prices retreated after reaching their highest point since April.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
U.S. stocks are poised to reach record highs on Tuesday amid a calm day on Wall Street.
The S&P 500 was up 0.4% in afternoon trading, surpassing its previous all-time high set two weeks ago. The Dow Jones Industrial Average was up 107 points, or 0.3%, by 2:36 p.m. Eastern time, while the Nasdaq composite was up 0.7% from its record set the day before.
Tesla saw a 9.1% jump after reporting better-than-expected spring sales.
However, some losses for key stocks countered this jump. Nvidia, known for its focus on artificial-intelligence technology, dropped 1.4% and weighed heaviest on the S&P 500. Eli Lily also declined by 1.1% following comments from President Joe Biden about the company’s high pricing for its treatments.
In the bond market, Treasury yields eased following remarks from the Federal Reserve head indicating potential rate cuts later in the year. Fed Chair Jerome Powell referenced improvements in inflation data, sparking hopes of a rate reduction to support the economy. Treasury yields have been declining since April on increased optimism for rate cuts.
A report on Tuesday showed higher job openings than expected, which could impact hopes for rate cuts. The abundance of job openings is positive for workers but raises concerns about inflation and delays to rate cuts.
Treasury yields initially dropped after Powell’s comments but recovered slightly following the job openings report. The 10-year Treasury yield stood at 4.44%, down from 4.46% the previous day.
Potential Republican election outcomes have also influenced Treasury yields, with last week’s debate between Biden and Trump prompting speculation of Republican victories in November. This possibility has pushed Treasury yields higher, reflecting concerns about increased government debt.
Commodity markets saw a slight decline in U.S. crude oil prices after reaching levels not seen since April, driven by expectations of high summer demand and hurricane risks in the Gulf of Mexico.
European indexes fell on news of inflation levels above the European Central Bank’s targets. Germany’s DAX dropped by 0.7%, and France’s CAC 40 declined by 0.3%.
Stock markets abroad also reacted to election results, with French stocks rallying on the prospect of government gridlock that could prevent policies inflating the government’s debt.
Election season continues worldwide, with UK voters heading to the polls later this week.
In Asia, Japan’s Nikkei 225 rose 1.1% as the Japanese yen weakened, benefiting Japanese exporters.
AP Writers Matt Ott and Zimo Zhong contributed.
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