S&P 500 hits record high despite tech sector weakness

The S&P 500 gained 0.06% to reach a new record high on Tuesday, overcoming early losses despite pressure on tech stocks, according to Bloomberg. Meanwhile, Nasdaq 100 declined 0.5%.

Defensive sectors provided crucial support to the S&P 500's gains, while major tech companies faced selling pressure amid high investor expectations for AI-related earnings. Market attention now turns to Wednesday's earnings reports from Tesla Inc. and Alphabet Inc.

Kathleen Brooks of XTB noted these results will serve as a key test for AI monetization. She highlighted that Meta and Nvidia shares have already surged over 20% this year, while the S&P 500 has gained more than 7% since recovering from April's tariff-driven selloff that nearly pushed it into bear market territory. Notably, the index hasn't moved more than 1% in either direction for nearly a month.