The S&P 500 climbed to a fresh intraday record on Tuesday, driven by gains in major technology stocks, as investors awaited a wave of earnings from the sector and looked ahead to the Federal Reserve’s first interest rate decision of the year on Wednesday.
The benchmark index advanced 0.41% to close at a record 6,978.60. The Nasdaq Composite outperformed, rising 0.91% to 23,817.10, while the Dow Jones Industrial Average lagged, falling 408.99 points, or 0.83%, to finish at 49,003.41. A sharp sell-off in UnitedHealth, which dropped nearly 20%, weighed heavily on the blue-chip index.
Among large-cap tech names, Apple gained more than 1% and Microsoft climbed over 2%. By the end of the week, more than 90 S&P 500 companies will have reported earnings, with Meta Platforms, Microsoft and fellow “Magnificent Seven” member Tesla set to release results on Wednesday. Apple is scheduled to report on Thursday.
Late last year, concerns over stretched valuations in artificial intelligence-related stocks pressured the broader market amid fears of a potential tech bubble. While questions remain around AI’s long-term returns, Martin noted that investor appetite for the technology is likely to persist, at least over the next couple of years.
Health insurers were among the session’s worst performers after the Centers for Medicare & Medicaid Services proposed a net average payment increase of just 0.09% for Medicare Advantage plans in 2027. Humana shares plunged 21%, while CVS Health fell 14%.
Investors are also closely watching the Federal Reserve’s upcoming policy decision. The central bank is widely expected to keep its benchmark rate unchanged at 3.5%–3.75%, though markets will look for signals on the timing of future rate cuts. Fed funds futures continue to indicate expectations for two quarter-point cuts by the end of 2026, according to the CME FedWatch Tool.
