Stock market index today: S&P 500, Nasdaq Hit Record Highs

Stock market index today, stocks extended their post-election rally on Tuesday as the S&P 500 and Nasdaq Composite rose to record closing highs.

S&P 500 Gains Slightly, Tech Stocks Advance Amid Mixed Results

The S&P 500 closed 0.1% higher after spending much of the session in negative territory, while the Nasdaq gained 0.4%. The Dow Jones Industrial Average dipped 0.2%, yet remains less than 1% from its own record high. The stock market has made a strong start to the month following its largest monthly gains of 2024 in November.

On Tuesday, large-cap tech stocks mostly advanced, with Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), Alphabet (GOOGL), and Meta Platforms (META) all making gains. However, Tesla (TSLA) diverged from the upward trend, falling 1.6% after a judge blocked CEO Elon Musk's $50 billion pay package.

Notable gainers included AT&T (T), whose shares rose 4.6% after the company announced a new strategic plan. Palantir Technologies (PLTR) saw a 6.9% increase after it was authorized to provide products and services under a U.S. government initiative for secure cloud computing.

On the downside, U.S. Steel (X) shares fell 8% following President-elect Donald Trump's announcement to block Nippon Steel's proposed $14 billion acquisition of the company. Intel (INTC) shares dropped 6.1% after the chipmaker announced CEO Pat Gelsinger's resignation. Zscaler (ZS) shares declined 4.7% after reporting quarterly results that met expectations but provided a disappointing outlook.

While Tuesday's economic calendar was light, it is set to pick up soon, with Federal Reserve Chairman Jerome Powell scheduled to speak on Wednesday and the November jobs report due for release on Friday morning. Investors are closely monitoring these events for clues about the Fed's approach to interest rate cuts.

Nasdaq Hits Record Highs as S&P 500 Steady Ahead of Job Report

The broad market index rose 0.05%, closing at 6,049.88. The Nasdaq Composite advanced 0.40% to finish at 19,480.91, setting a new intraday record as Apple reached a fresh 52-week high. Both the S&P 500 and the tech-heavy Nasdaq achieved new closing records, while the Dow Jones Industrial Average lagged, dropping 76.47 points, or 0.17%, to settle at 44,705.53.

“U.S. equities are moving sideways today ahead of Friday’s job report, which could offer insights into the Fed’s actions following its December 17 and 18 FOMC meeting,” noted Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “Overall, we see a lot to be optimistic about regarding U.S. equities, despite the uncertainties that lie ahead.”

“Factors like inflation, interest rates, and earnings are fostering a risk-on sentiment, and technological advancements, particularly in Gen AI, continue to drive market expansion and lift equities,” he added.

Since the U.S. presidential election, stocks have experienced a significant rally. From the November 5 vote, the S&P 500 has surged 4.6%, while the Nasdaq has climbed approximately 5.7%. The Dow has increased by 5.9% during the same period.

“When the market rises 10% or more with a newly elected president, it has never declined in December,” remarked Ken Mahoney, CEO of Mahoney Asset Management.

However, he cautioned that this does not guarantee that stocks will soar in December, especially after November was the market's strongest month of the year. On the last trading day of November, both the Dow and the S&P reached new intraday and closing highs, with the Dow gaining 7.5% and the S&P 500 increasing by 5.7% during the month.