Tech Stocks Lift S&P 500 as Apple Hits Record High

The S&P 500 and Nasdaq rose on Tuesday, driven by significant gains in Apple shares and anticipation of upcoming consumer price data and a Fed policy announcement. Apple hit a record high following new AI feature reveals at their developer event. The S&P 500 tech index also reached an all-time high.

The S&P 500 and Nasdaq were higher in afternoon trading on Tuesday, helped by gains in shares of Apple, while investors also awaited consumer prices data and a policy announcement from the Federal Reserve. Apple shares were up 6.4% and hit a record high after declining in the previous session.

At its annual developer event that kicked off on Monday, Apple unveiled new artificial-intelligence features meant to increase the appeal of its devices, including an improved Siri virtual assistant that can answer a wider range of queries and accomplish more complicated tasks than earlier. The S&P 500 technology index was up 1.3% and hit an all-time high.

The Consumer Price Index report will be released on Wednesday, and the U.S. central bank's policy announcement also is due on Wednesday. The central bank is likely to leave interest rates unchanged but will release its updated economic projections and "dot plot," which shows where policymakers expect interest rates to stand this year and longer-term.

"Everybody is feeling uneasy, but the data and actions consumers are taking continue to point toward resiliency, and that tends to be overall fairly bullish," said Oliver Pursche, senior vice president and adviser for Wealthspire Advisors in Westport, Connecticut. The Dow Jones Industrial Average fell 125.67 points, or 0.32%, to 38,742.37, the S&P 500 gained 8.68 points, or 0.16%, to 5,369.47 and the Nasdaq Composite added 119.16 points, or 0.69%, to 17,311.69.

Friday's U.S. monthly jobs report was stronger than expected. Markets have dialed back expectations for the Fed's first rate cut happening in September, now pricing in about a 50% chance, according to the CME's FedWatch tool. General Motors gained 1.7% after the automaker announced a $6 billion share buyback plan.

Declining issues outnumbered advancing ones on the NYSE by a 1.66-to-1 ratio; on Nasdaq, a 1.26-to-1 ratio favored decliners. The S&P 500 posted 18 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 36 new highs and 116 new lows.