S&P 500, Nasdaq Close at Record Highs as AI Rally Lifts Major Indices

Mumbai, 7 October 2026: US stocks ended higher on Tuesday, with the S&P 500 and Nasdaq Composite closing at fresh record highs. Strength in artificial intelligence-related stocks, along with a decline in Treasury yields, helped support sentiment across Wall Street.

The Dow Jones Industrial Average rose 253.38 points, or 0.49%, to close at 51,521.28. The S&P 500 gained 0.58% to finish at 7,818.93, while the Nasdaq Composite advanced 0.45% to 27,599.79. Both the S&P 500 and Nasdaq also reached new intraday highs during the session.

Dow Jones Gains 253 Points as Technology Shares Support Blue Chips

The Dow opened at 51,444.10 and moved between 51,422.90 and 51,672.25 before ending at 51,521.28. Gains in several technology and consumer-focused companies helped the index finish higher, with 22 of its 30 constituents closing in positive territory.

Cisco Systems was the strongest performer on the index, rising 4.54%, followed by Walmart, which gained 2.03%, and Home Depot, up 1.97%. On the other side, Intel fell 3.18%, Salesforce declined 2.09% and Boeing slipped 1.50%.

The broader market also benefited from lower Treasury yields and softer oil prices, which helped ease some pressure on equities and supported buying across several sectors.

S&P 500 Rises 0.58% to Another Record Close

The S&P 500 opened at 7,805.96 and finished 44.98 points higher at 7,818.93. It climbed as high as 7,844.52 during the session, setting another intraday record.

Technology, utilities and consumer-related stocks contributed to the advance. Constellation Energy was among the standout performers, surging 12.25%, while Marvell Technology gained 5.81%. Ciena jumped 13.85% and Lamb Weston Holdings rose 7.49%.

Not every stock participated in the rally. Coterra Energy fell 8.62%, Moderna declined 7.77% and Western Digital dropped 6.93%.

The S&P 500’s close above 7,800 marked another milestone for the benchmark, giving it its 28th record close of 2026.

Nasdaq Composite Gains 0.45% as Technology Shares Extend Record Run

The Nasdaq Composite opened at 27,641.17 and closed at 27,599.79, marking a gain of 122.48 points, or 0.45%. Its intraday high stood at 27,722.75, while the low was 27,592.56. Technology and growth-oriented shares, including Broadcom with a 3.67% gain, Advanced Micro Devices with 2.80% and Marvell Technology with 5.81%, contributed to the index’s daily performance. The technology-heavy benchmark responded to optimism over AI-related demand and declining Treasury yields during the session.

Marvell Technology led the Nasdaq’s notable gainers after raising its fiscal 2028 revenue outlook to approximately $20 billion, representing about 67% year-over-year growth. Cisco Systems rose 4.54%, Broadcom advanced 3.67% and Palo Alto Networks gained 3.23%. On the declining side, Seagate Technology fell 9.22%, Western Digital dropped 6.93% and KLA Corporation declined 4.54%. The index achieved its second consecutive record close.

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Russell 2000 Falls 0.59% as Smaller Stocks Diverge From Broader Rally

The Russell 2000 opened at 2,854.96 and closed at 2,830.30, losing 16.84 points, or 0.59%. It recorded an intraday high of 2,864.83 and a low of 2,825.98. Movements among smaller-cap companies, including Fabrinet with a 7.78% gain and Sterling Infrastructure with 7.71%, contributed to the benchmark’s performance as small-cap shares diverged from the broader market trend. The index underperformed the major averages despite gains in select industrial and technology names.

Among the Russell 2000’s top gainers, Fabrinet advanced 7.78%, Sterling Infrastructure rose 7.71% and Argan gained 8.23%. Twist Bioscience recorded the steepest decline at 18.55%, while 10x Genomics fell 17.47% and Spyre Therapeutics dropped 13.60%. The small-cap benchmark’s decline reflected weaker breadth, with more decliners than advancers during the session.

S&P 100 Rises 0.55% as Large-Cap Shares Track Tech Momentum

The S&P 100 opened at 3,898.23 and finished at 3,900.20, recording a gain of 21.31 points, or 0.55%. The index traded between 3,894.60 and 3,914.19 during the session. Movements in major large-cap constituents, including Constellation Energy with a 12.25% gain, Broadcom with 3.67% and Marvell Technology with 5.81%, contributed to its daily performance as large-cap shares tracked technology momentum.

The index’s advance was supported by broad-based gains across its large-cap constituents. Advanced Micro Devices added 2.80%, while Cisco Systems rose 4.54%. On the declining side, Intel fell 3.18% and Salesforce dropped 2.09%. The S&P 100’s close above 3,900 reflected the session’s positive momentum among mega-cap shares.

Dow Composite Rises 77 Points as Utility Strength Offsets Transport Decline

The Dow Jones Composite Average opened at 16,045.71 and closed at 16,076.20, gaining 77.49 points, or 0.48%, after moving between a high of 16,113.30 and a low of 16,041.43. The Dow Jones Transportation Average ended at 19,701.76, compared with an opening level of 19,826.87, representing a decline of 0.45%. The Dow Jones Utility Average closed at 1,047.19, advancing 2.59% from its opening level of 1,023.24. Movements in relevant constituents reflected strength in utility shares tied to nuclear energy agreements.

The Dow Jones Utility Average’s 2.59% advance was the standout performance within the composite, driven by Constellation Energy’s 12.25% surge. The Transportation Average’s decline reflected weakness in select industrial and logistics names. Within the composite, Cisco Systems and Walmart contributed positively, while Intel and Salesforce weighed on the broader measure.

Philadelphia Semiconductor Index Gains 0.34% as Chip Stocks Move Mixed

The Philadelphia Semiconductor Index (SOX) opened at 13,260.98 and closed at 13,217.82, gaining 45.09 points, or 0.34%. Its intraday high was 13,349.96, while the low was 13,196.50. Semiconductor-related constituents such as Broadcom with a 3.67% gain, Advanced Micro Devices with 2.80% and Marvell Technology with 5.81% contributed to the sector benchmark’s daily performance amid strong AI-related demand.

Among the SOX’s notable movers, Marvell Technology led with a 5.81% advance, while Broadcom gained 3.67% and Advanced Micro Devices rose 2.80%. On the declining side, KLA Corporation fell 4.54%, Lam Research dropped 3.44% and Intel declined 3.18%. The mixed performance within the semiconductor sector reflected diverging demand trends across chip categories.

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NYSE Composite Gains 0.56% as Broader Shares Track Positive Momentum

The NYSE Composite Index opened at 23,866.99 and closed at 23,921.65, recording a gain of 133.04 points, or 0.56%. The index traded between 23,866.99 and 23,988.90 during the session. Movements across industrial, financial and consumer segments contributed to its performance as easing Treasury yields shaped broader US equity trading. The index’s advance was supported by gains across a broad range of listed securities, with utilities and technology names leading.

The NYSE Composite’s performance reflected the day’s positive breadth, with the majority of its components closing higher. Financial stocks recorded modest gains, while energy shares moved higher alongside changes in crude oil prices. The index’s close near 23,922 marked one of its strongest sessions in recent weeks.

S&P MidCap 400 Gains 0.52% as SmallCap 600 Ends Nearly Flat

The S&P MidCap 400 opened at 3,691.87 and closed at 3,697.48, moving 19.23 points, or 0.52%, with an intraday range of 3,691.87 to 3,715.21. The S&P SmallCap 600 opened at 1,694.14 and ended at 1,689.42, losing 0.27 points, or 0.016%, after trading between 1,686.26 and 1,698.66. The two benchmarks reflected movements among mid- and small-cap shares as technology and utility strength affected the wider market.

The S&P MidCap 400’s advance was supported by gains in industrial and technology names, while the S&P SmallCap 600 ended nearly flat. Among mid-cap gainers, Ciena rose 13.85%, while Option Care Health surged 32.65% following an acquisition agreement. The small-cap benchmark’s marginal decline reflected weaker breadth among its components.

Oil Retreats, Yields Ease as AI Enthusiasm Drives Session Direction

The principal market catalyst was the decline in Treasury yields from multi-year highs alongside easing oil prices. The 10-year Treasury yield fell 3 basis points to 5.281%, while the 30-year bond yield was little changed at 5.655%. Both had scaled levels not seen since 2002 on Monday. Brent crude declined 2% to trade around $98 per barrel, easing supply concerns that had pushed prices into triple digits.

AI-related enthusiasm also shaped the session as Marvell Technology raised its long-term revenue outlook and Advanced Micro Devices advanced on positive analyst commentary. Trading remained focused on the trajectory of interest rates and the sustainability of AI-driven earnings growth, with movements across technology and utility sectors reflecting the day’s broader market conditions.

VIX Falls 3.29% as Market Volatility Indicator Retreats

The CBOE Volatility Index (VIX) changed 3.29% to 15.01, compared with its previous close of 15.52. The index measures expected volatility in the S&P 500 over the coming 30 days. Its movement during the session coincided with record closes in the S&P 500 and Nasdaq Composite, reflecting reduced demand for downside protection as equity benchmarks advanced.

The VIX traded between 14.96 and 15.54 during the session, remaining well below its 52-week high of 35.30. The decline in the volatility gauge accompanied the broad-based equity rally, with all three major averages closing higher.

S&P 500 Sectors Show Broad Gains with Utilities Leading All Groups

Performance across the 11 S&P 500 sectors was broadly higher, with 10 of 11 groups ending in positive territory. Utilities recorded the strongest move at 3.01%, while Health Care was the only declining sector with a loss of 0.15%. The remaining sectors recorded the following moves: Information Technology 0.7%, Communication Services 1.14%, Consumer Discretionary 1.4%, Consumer Staples 0.5%, Financials 0.3%, Industrials 0.9%, Energy 0.89%, Real Estate 1.1% and Materials 1.22%. The sector movements followed easing Treasury yields and strength in AI-linked utilities.

The Health Care sector’s marginal decline was led by Moderna, which fell 7.77%, and Illumina, which declined 6.86%. The utilities sector’s 3.01% advance was driven by Constellation Energy’s 12.25% surge. Technology and communication services sectors benefited from the AI-driven rally, while materials and real estate sectors gained on lower borrowing cost expectations.

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Magnificent Seven Advance as Marvell and AMD Lead Technology Gains

Among the Magnificent Seven, Nvidia moved 0.14%, Apple changed 0.22%, and Microsoft recorded 0.78%. Alphabet gained 0.35%, Amazon advanced 1.95%, Meta Platforms declined 0.41% and Tesla added 0.51%. Their daily movements contributed to the performance of major US equity benchmarks, with Nvidia’s market capitalisation approaching the $6 trillion mark.

Marvell Technology posted the strongest gain among major technology names with a 5.81% advance, followed by Broadcom at 3.67% and Advanced Micro Devices at 2.80%. Cisco Systems rose 4.54% and Palo Alto Networks gained 3.23%. Seagate Technology declined 9.22% and Western Digital fell 6.93% among memory-focused names.

Semiconductor, Financial And Energy Stocks Show Mixed Daily Moves

Semiconductor stocks were mixed, with the Philadelphia Semiconductor Index moving 0.34% higher. Financial stocks recorded modest gains, with JPMorgan Chase rising 0.17% and Goldman Sachs adding 0.42%. Energy stocks moved higher alongside changes in crude oil prices, with Exxon Mobil gaining 0.28% and Chevron advancing 0.55%. AI and growth stocks were higher, with movements among relevant constituents contributing to the technology-heavy indices.

Constellation Energy’s 12.25% surge following a 20-year nuclear power agreement with Alphabet represented the most significant single-stock development of the session. Vistra Energy gained 10.77% and Talen Energy rose 12.43% among utility and power generation names. In the financial sector, Berkshire Hathaway gained 0.30% and BlackRock added 1.22%.

Economic Data Shows Wider Trade Deficit as Markets Assess Release

The latest economic data showed the US trade deficit widened to $105.6 billion in August, compared with a revised $88.6 billion in the prior month. The deficit came in above the $102 billion that economists had expected. The ADP weekly employment change stood at 20,000 for the week ended September 19. The releases provided the latest information on trade and employment conditions during the session.

The wider trade deficit marked the largest amount since March 2025, when the deficit stood at $132.98 billion. The data reflected resilient import demand alongside export fluctuations. The ADP employment figure provided the latest weekly snapshot of labour market conditions ahead of the Federal Reserve’s September meeting minutes due Wednesday.

Federal Reserve Minutes Awaited as Treasury Yields Set Rate Backdrop

The Federal Reserve remained a key focus as markets assessed the trajectory of monetary policy ahead of the September meeting minutes due Wednesday. The latest developments showed expectations for another rate hike this month had eased following weaker-than-expected payrolls data last week. The 2-year US Treasury yield stood at 4.79%, while the 5-year yield was 4.85%. The 10-year Treasury yield stood at 5.281%, and the 30-year yield was 5.655%. The yield curve steepened as longer-dated yields remained near multi-decade highs amid fiscal sustainability concerns.

The 10-year yield declined 4 basis points from Monday’s close of 5.31%, which was its highest level in 24 years. The 30-year yield eased 2 basis points from 5.674%. Fed Governor Christopher Waller and other officials were scheduled to speak during the session, providing additional context on the policy outlook.

Crude Oil, Gold and Metals Move with Supply and Rate Developments

Crude oil prices ended the closing session little changed after earlier fluctuations, as traders weighed resilient Middle Eastern exports against continued geopolitical risks. Brent crude settled at $100.58 per barrel, a change of 0.26%, while West Texas Intermediate (WTI) stood at $89.44 per barrel, moving 0.01%. During the session, Brent had traded around $101 and WTI near $89.80, reflecting intraday volatility before settling near unchanged levels. The muted close followed data showing crude exports from the Middle East exceeded pre-war levels on four days during the last week of September, underscoring the resilience of regional oil flows despite attacks on ships passing through the Strait of Hormuz. A G7 decision to release emergency strategic reserves also helped ease supply-side anxiety, keeping a lid on prices even as Brent remained anchored around the $100 level. Attacks by Yemen’s Houthi rebels on Saudi targets continued to keep traders wary of potential risks to Gulf supplies.

Gold and other metals moved as rate expectations and currency dynamics shaped trading. Gold futures rose 1% to $4,195 an ounce, while silver moved to $61.05. Copper changed 0.42% to $6.56, and natural gas moved 1.80% to $3.12. These commodity movements followed easing Treasury yields and a softer US dollar. The US Dollar Index (DXY) slipped 0.3% to 101.86, supporting dollar-denominated commodity prices. The 10-year Treasury yield fell 3 basis points to 5.281%, while the 30-year yield was little changed at 5.655%. The yield backdrop followed shifting expectations around Federal Reserve policy after weaker employment data.

The commodity and currency moves coincided with the day’s broader market developments. EUR/USD stood at 1.119, USD/JPY traded at 158.22, and GBP/USD was at 1.335. Crude oil’s steady close provided relief to equity markets after prices had remained elevated amid Middle East tensions, while gold’s advance reflected continued demand for safe-haven assets. Traders continued to digest a modest easing in supply-side anxiety, with Saudi export numbers and the G7 reserve release helping to cap price pressures. These developments, alongside the decline in the dollar, shaped commodity and currency trading during the closing session.

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Dollar and Major Currencies Move Against Rate Expectations

The US Dollar Index (DXY) moved 0.3% lower to 101.86. EUR/USD stood at 1.119, USD/JPY traded at 158.22, and GBP/USD was at 1.335. Currency movements followed shifting interest rate expectations after weaker US employment data reduced the probability of near-term Fed rate hikes. The dollar’s decline supported emerging market currencies and dollar-denominated commodity prices.

The Japanese yen strengthened modestly against the dollar, while the euro gained on improved risk appetite. The pound remained range-bound ahead of the UK’s Autumn Budget scheduled for later in the month.

The closing session was shaped by easing Treasury yields and declining oil prices, alongside continued AI-driven enthusiasm in technology and utility sectors. The S&P 500 and Nasdaq Composite finished at record highs, while the Dow Jones also advanced. Sector, bond, commodity and currency markets recorded the changes outlined above.