FX.co ★ US Stocks Renew Record Highs

US stocks continued their upward trend on Tuesday, with the S&P 500 gaining 0.3%, the Dow climbing by 180 points, and the Nasdaq increasing by 0.8%. All three indices reached new record highs in anticipation of the Federal Reserve's expected 25-basis-point interest rate cut on Wednesday. The rally was particularly strong in the areas of artificial intelligence and large-cap technology stocks, driven by two significant corporate developments that bolstered growth expectations. Microsoft rose by 2.3% following a landmark agreement with OpenAI that redefines the commercial trajectory for generative AI. Meanwhile, Nvidia surged by 6.1% after announcing a $1 billion strategic investment in Nokia, enhancing the demand for its chips and networking equipment. Outside the tech sector, favorable earnings results also stimulated investor confidence, with UPS climbing 8.1% on robust performance reports and UnitedHealth gaining 1.6% after improving its profit outlook for 2025. Despite Amazon's confirmation of approximately 14,000 corporate job cuts, which introduced some headline risk, the company added 1.4% to its stock value, without halting the market's advance. Investor attention remains on a busy earnings calendar this week, featuring reports from Alphabet, Amazon, Apple, Meta, and Microsoft, alongside anticipated guidance from the Federal Reserve.