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S&P 500 hits a record high

The S&P 500 rose to an intraday record of 7,844.52 on Tuesday, testing its all-time high. The index topped its previous intraday peak of 7,830 set on Aug. 13 and also finished above 7,800 for the first time.

The rebound in U.S. equities came despite months of oil shocks, higher borrowing costs and the prospect of another rate-hike cycle. The move suggested investors continued to price in corporate earnings even as macroeconomic pressures mounted.

Buying continued despite bond yield and oil pressure

The record run came as the yield on the U.S. 10-year Treasury note hovered around 5.31%, its highest level since 2022. The Federal Reserve (Fed) raised its policy rate in mid-September for the first time in more than three years and signaled that more increases could follow.

Volatility in energy markets was another drag on sentiment. Oil briefly climbed above $100 a barrel in early March for the first time since 2022 after the conflict involving Iran disrupted energy flows through the Strait of Hormuz; after falling below $70, it returned above $100 in early September.

The rally was concentrated in a few giant tech stocks

The AI theme drove the index

Unlike some previous record attempts, the latest rally appears to have been concentrated in a limited number of large stocks rather than spread broadly across the market. The companies known as the “Magnificent 7” — Nvidia, Alphabet, Amazon, Apple, Meta, Microsoft and Tesla — account for more than 34% of the index’s total market value.

  • This concentration means that the day-to-day moves of just a few megacap companies can heavily influence both the S&P 500 and the Nasdaq.
  • Rising investment in data centers and computing infrastructure is also supporting chip and equipment demand, giving technology shares an added boost.

Amazon said earlier this year that it expected to spend about $200 billion in capital expenditures companywide in 2026, citing opportunities in AI, chips and robotics. In June, SpaceX’s debut at a $75 billion IPO also showed that appetite for growth companies remained intact despite high energy prices and borrowing costs.

Eyes turn to the Fed minutes

Even so, analysts warn that weak market breadth could persist unless there is a clear slowdown in inflation or a stronger signal that the Fed is nearing its goals. The minutes from the Fed’s September meeting, due on Wednesday, will be closely watched for clues on the rate path and risk appetite.

Although the index has reached a new high, the narrow base of the rally and volatility in bond yields and energy prices are seen as key vulnerabilities that could shape markets in the months ahead.

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