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The S&P 500 rose for a second day on Tuesday, driven higher by soaring AI stocks.
Stocks rallied for a second straight day, lifting the S&P 500 back into positive territory for the year.
The S&P 500 rose 0.7% on Tuesday, putting the benchmark index about 5 points—or 0.08%—above its close on the last day of 2024. The S&P 500 had been in negative territory for the year since early March.
Stocks got a boost on Tuesday when Nvidia (NVDA) announced a partnership with Humain, an AI company owned by the Saudi Arabian sovereign wealth fund. The partnership sent AI infrastructure stocks soaring on hopes Nvidia and peers can strike more deals with governments around the globe.
Nvidia soared nearly 6%, lifting its market capitalization above $3 trillion for the first time since February.
Super Micro Computer (SMCI), another AI beneficiary, jumped 16%, while AI software company Palantir (PLTR) surged 8% to a record high. Nuclear power provider Vistra (VST) advanced more than 6%.
Stocks have been on a tear in recent weeks, bolstered by solid first-quarter earnings and optimism that tariffs will end up significantly lower than those unveiled on “Liberation Day” in early April.
Wall Street’s bullishness was supercharged yesterday when the U.S. slashed tariffs on Chinese imports for 90 days, lowering barriers that had made trade between the world’s largest economies next to impossible.
The Dow and Nasdaq Composite are down slightly in 2025.
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