S&P 500 hits record high on tech strength, earnings optimism

The S&P 500 Index hit a record high on Tuesday over the positive earnings of Tesla, Nvidia and other Tech companies, while upbeat results from UPS and GE raised optimism around the earnings’ season.

Tesla rose 5.4%, extending a record round that helped the electric carmaker surpass $1 trillion in market value on Monday after landing its biggest ever order from rental car company Hertz.

Chipmaker Nvidia rose 7.8% to an all-time high, while gains in Amazon, Apple and Microsoft helped the tech-heavy Nasdaq outperform.

Inflation and supply chain troubles do not look be an issue in the near term as the market right now is just focused on the quarterly performance and with calm rates. All the 11 major S&P sectors advanced in early trading, with technology and consumer discretionary rising the most.

Earnings at S&P 500 companies are expected to grow 35.6% YOY for Q3, with market participants assessing how companies are navigating supply chain bottlenecks, labor shortages and inflationary pressures.