Record Highs: Tech Gains and Rate Cut Expectations Fuel Stock Market Surge

The S&P 500 and Nasdaq reached record highs amid expectations of a Federal Reserve rate cut and easing trade tensions. Tech stocks led the rally, while U.S.-China tariff truce and strong economic data contributed to positive market sentiment. Traders anticipate a rate cut in September.

The S&P 500 and Nasdaq achieved record closing highs on Tuesday, driven by expectations of an imminent Federal Reserve interest rate cut following July's inflation data. The Consumer Price Index rose 0.2% last month, slightly easing market concerns.

Tech stocks surged as companies like Alphabet saw significant gains. Meanwhile, the Treasury bond yields slipped, and rate futures indicated an 88.8% chance of a rate cut in September. U.S. President Donald Trump's calls for lowering rates added pressure on the Federal Reserve.

The market stability is underpinned by strong tech earnings, continued trade negotiations, and favorable economic indicators. As equities rallied, financial analysts highlighted the potential impact of new tariff data and cautioned about future rate cuts amid global uncertainties.

(With inputs from agencies.)