NEW YORK (AP) โ U.S. stock indexes rose Tuesday to set more records after another quiet day of trading.
The S&P 500 rose 13.28 points, or 0.3%, to 5,321.41, surpassing its record set last week. The Nasdaq composite added 37.75 points, or 0.2%, to 16,832.62, a day after setting its latest all-time high. The Dow Jones Industrial Average rose 66.22, or 0.2%, to 39,872.99 and is just below its high set last week.
The indices have rose to records recently largely due to expectations that the Federal Reserve cut interest rates later this year, when inflation is expected to cool. More reports showing large U.S. companies posting bigger-than-expected profits have also boosted the market.
Macy's joined the chorus of companies that posted bigger profits during the latest quarter than analysts expected, and its shares rose 5.1% after some early fluctuations. The company, which runs Bloomingdale's in addition to its namesake stores, raised the extremes of its forecasts for upcoming sales and profits.
Lam Research also helped support the market after the semiconductor industry supplier announced a program to buy back up to $10 billion of its own shares. The company said it will undergo a 10-for-one stock split, which would lower the price of each share and make it more affordable for more investors. Its shares rose 2.3%.
That helped offset a 3.7% decline for Palo Alto Networks. The cybersecurity company delivered a better-than-expected earnings report but gave a forecast range for revenue in the current quarter whose midpoint was slightly below analysts' expectations.
Trump Media & Technology Group, the company behind Donald Trump's Truth Social network, sank 8.7% after revealing a net loss of $327.6 million in its first quarterly report as a publicly traded company.
Lowe's fell 1.9% despite reporting better results for the latest quarter than analysts feared. He said he will maintain his revenue forecast this year, including a drop of up to 3% for a major underlying sales figure, as high interest rates keep customer activity in check.
Rates on mortgages, credit cards and other payments have become more expensive because the Federal Reserve has been keeping its main interest rate at the highest level in more than two decades. He is trying to pull off a tightrope walk in which he weakens the economy through high interest rates enough to quell high inflation, but not enough to cause a painful recession.
An encouraging report released last week shows Inflation May Finally Be Returning in the right direction after a discouraging start to the year raised hopes that such a โsoft landingโ for the economy is possible. It also bolstered hopes that the Federal Reserve will cut its main interest rate once or twice this year.
A top Federal Reserve official, Gov. Christopher Waller, said in a speech Tuesday that he expects to see a moderation in economic data after recently weaker-than-expected reports on U.S. retail sales and the economy. strength of American service companies. That, in turn, should help put downward pressure on inflation.
But he said he would โneed to see several more months of good inflation data before I would feel comfortable supporting an easing of monetary policy,โ unless the labor market weakened significantly before then.
Hopes of upcoming rate cuts have pushed Treasury yields lower, easing pressure on the stock market. The 10-year Treasury yield fell to 4.41% from 4.48% late Monday. The two-year yield, which more closely tracks the Fed's stock expectations, fell to 4.83% from 4.85%.
There aren't many top-tier economic reports this week, and the biggest potential for sharp market moves will likely come from upcoming earnings reports.
The headliner of the week is Nvidia, whose shares have skyrocketed amid a frenzy around artificial intelligence technology. It will report its latest quarterly results on Wednesday and expectations are high.
Target will also report on Wednesday and Ross Stores the following Thursday. They could offer more details on how American household spending is holding up. The pressure on them has been increasing amid still high inflation, and appears to be the highest in lower income clients.
In foreign stock markets, indices fell across much of Europe and Asia.
The indices fell 2.1% in Hong Kong and 0.4% in Shanghai after S&P Global Market Intelligence raised its forecast for Chinese economic growth this year to 4.8% from 4.7% in April. but he stressed that he was not too optimistic.
"The overall outlook for a tepid economic recovery remains unchanged, with the expansion supported by further policy stimulus, strengthening external demand and a gradual improvement in private sector confidence," it said in a report.
AP Business writers Yuri Kageyama and Matt Ott contributed.
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