The S&P 500 rose to a fresh all-time intraday high on Tuesday, boosted by gains in key technology names as well as declines in oil prices and Treasury yields.
The broad market index was last up 0.5%, while the Dow Jones Industrial Average gained 205 points, or 0.4%. The Nasdaq Composite added 0.5% and had hit a new all-time high as well.
The moves higher were bolstered by a rise in chipmakers. Shares of Marvell Technology popped 7%, while others such as Nvidia and Broadcom traded up around 1% each.
Additionally, the benchmark 10-year Treasury note yield fell 2 basis points to 5.29% after scaling to levels not seen since 2002 on Monday. The 2-year Treasury yield declined 3 basis points to 4.802%.
Bonds have been volatile over the past six weeks, Morgan Stanley Wealth Management investment chief Lisa Shalett said in a note to clients. She cited a potentially new Fed policy framework, economic growth and high oil prices while the Middle East conflict stretches on as factors.
“Nevertheless, while intraday implied volatility has risen, the six-week stretch has not reached the extremes that catalyzed the 2022 equity bear market,” Shalett wrote.
Traders are now looking ahead to the Federal Reserve’s minutes from its September meeting due Wednesday, which could shed some light on policymakers’ move to raise rates.
Alongside Treasury yields, a drop in oil prices also gave equities a boost Tuesday. Brent crude traded 2% lower at around $98 per barrel. West Texas Intermediate futures shed 1% to roughly $87 a barrel.
S&P 500, Nasdaq hit new high
The S&P 500 and Nasdaq Composite traded at record levels on Tuesday morning.
The broad market index rose 0.5% shortly after the opening bell, while the Nasdaq Composite gained 0.6%. The Dow Jones Industrial Average climbed 189 points, or 0.4%.
If the S&P 500 ends the day above 7,798.99, it would post a new record close.
— Sean Conlon and Nick Wells
Trade deficit widens in August
The U.S. trade deficit widened to levels not seen since before President Donald Trump’s sweeping tariffs announcement early last year.
The deficit came in at $105.6 billion in August, the Commerce Department reported Tuesday. That’s the largest amount since March 2025, when the deficit was at $132.98 billion, and was above the $102 billion that economists polled by the Dow Jones expected.
The dollar index also hit its low of the session at 101.754, marking its lowest level since Oct. 2, when the index hit a low of 101.668
— Gina Francolla and Sean Conlon
McKesson, CD&R to acquire Option Care Health in a $5.8 billion deal
The companies will pay $32.05 per share in cash, reflecting a total enterprise value of approximately $5.8 billion.
At the closing of the transaction, CD&R will hold a majority ownership interest, while McKesson will hold a minority ownership interest. Option Care Health will remain a separate entity with its own management team.
The transaction aligns with McKesson’s strategic objectives, increasing its exposure to specialty and outpatient care, areas that have become increasingly important as more complex treatments shift outside hospitals.
— Deena Zaidi
Alphabet, Option Care Health and Berkshire Hathaway among the stocks making premarket moves
Check out the companies making headlines before the bell:
- Constellation Energy, Alphabet — Alphabet shares rose about 0.5%, while Constellation Energy jumped more than 6%, after Google announced a major long-term power agreement with the power company. Google will buy power tied to 890 megawatts of new nuclear capacity, alongside a separate 2,700-megawatt supply agreement, supporting more than $4.3 billion in new Constellation investment.
- Option Care Health, McKesson — Shares of Option Care surged more than 20% following a report in the Financial Times that health care services company McKesson and private equity firm Clayton Dubilier & Rice are in advanced talks to jointly acquire the infusion services provider in a transaction valued at more than $5 billion. McKesson stock is up 1.5%.
- Lennar, Berkshire Hathaway — In a regulatory filing, Berkshire Hathaway disclosed it purchased about 2.4 million shares of Lennar. Shares of Lennar gained 1.5%, while Berkshire Hathaway was fractionally higher.
Read the full list here.
— Sarah Min
Google strikes nuclear power deal with Constellation Energy
Shares of Google-parent Alphabet rose 0.6% after the company announced a nuclear power deal with Constellation Energy, which traded 6% higher on the news. As part of the 20-year deal, Google will purchase 890 megawatts of nuclear energy as it expands its AI capabilities.
— Fred Imbert
AMD rises after Citi price target hike
AMD shares were up more than 1% after Citi raised its price target on the chipmaker to $800 from $575, implying upside of 27% from Monday’s close. Analyst Atif Malik said the CPU market could balloon to $300 billion by 2030 as computing demand from Meta’s Muse AI agent grows.
“In Agentic AI, CPUs have become the new bottleneck,” Malik said. “Following the release of Meta Muse and our subsequent CPU TAM raise, we are raising estimates on AMD given our belief that AMD will be the primary beneficiary of the CPU renaissance and our belief that Meta is one of the largest customers of AMD’s server business.”
— Fred Imbert
Global bond yields fall as sell-off eases
Britain is on ‘thin ice,’ warns ex-Bank of England chief economist — and it must act to ‘appease financial markets’
The U.K. is “on thin ice” ahead of its critical Autumn Budget, according to a former chief economist of the Bank of England, who warned the government must curb public spending and refrain from painful tax hikes.
Speaking to CNBC’s Steve Sedgwick, Andy Haldane — a member of the central bank’s Monetary Policy Committee until 2021 — said there were “perils” running into the budget update, currently scheduled for Oct. 28.
“The truth is we are skating on pretty thin ice in fiscal terms, and nothing would be worse both economically and politically than if the ice were to crack beneath our feet,” Haldane said on the sidelines of the How Britain Can Win conference, hosted by Goldman Sachs 10,000 Small Businesses UK.
Japan’s Nikkei 225 gains over 1% as Asia markets close mostly higher
Asia markets closed mostly higher Tuesday.
Japan’s Nikkei 225 rose 1.05% to end the trading day at 70,683.98, while the broader Topix added 0.92% to 4,183.56.
South Korea’s Kospi fell 0.89% to 6,941.39 while the small-cap Kosdaq gained 2.98% to 919.92.
Australia’s S&P/ASX 200 advanced 0.57% to 8,735.7.
Mainland China markets remained closed for a holiday.
— Lee Ying Shan
European stocks open higher
European stock markets saw a buoyant open, with the Stoxx 600 index up 0.46% and almost all sectors in the green, continuing positive momentum in the previous two sessions.
Health-care stocks led gains, up 1.36%, while oil and gas shares fell 0.2% amid signs of resilience in Middle East crude exports.
— Jenni Reid
Trump allows cheaper, dyed diesel on highways to blunt historic fuel-cost spike ahead of midterms
President Donald Trump has allowed the use of cheaper red-dyed diesel, typically reserved for farm operations, to be used more broadly in an attempt to bring down record-high fuel costs.
Trump signed an executive order Monday evening stateside to temporarily allow truckers and farmers to use red-dyed diesel — which is exempt from highway fuel taxes — and deferred related taxes on the fuel through the end of this year.
French banking group BPCE becomes ‘strategic shareholder’ in Spain’s Sabadell
BPCE has acquired a 7% stake in Spanish lender Banco de Sabadell, France’s second-biggest banking group said Tuesday, adding that it planned to seek representation on Sabadell’s board and cap its shareholding at 9.9%.
A release said the banks wanted to “underline the friendly nature of this equity investment,” which comes as the European banking sector undergoes a wave of consolidation — including an ongoing play by Italy’s UniCredit for Germany’s Commerzbank.
Sabadell, the fourth-largest Spanish bank which recently sold British lender TSB to Santander, was the subject of a failed hostile takeover bid by its domestic rival BBVA last year.
BPCE and Sabadell “intend to explore business cooperation opportunities, in particular in corporate and investment banking, equipment leasing, consumer credit, and cross-border clients business,” they said in a statement.
“While BPCE has stated it does not intend to increase its holding above 9.9%, we think this may increase debate on future industry consolidation in Spain,” Citi analysts said Tuesday, noting that the country may be heading for a new political backdrop after parliamentary elections were called on Monday for November.
— Jenni Reid
Treasury yields stay elevated as fiscal worries keep pressure on long-term U.S. debt
The benchmark 10-year Treasury yield was flat at 5.315% while the 30-year yield climbed 1 basis point to 5.674%.
Jobs data has prompted traders to pare expectations for another Federal Reserve rate hike this month, but BMO’s Ian Lyngen said longer-dated Treasurys remain under pressure from broader concerns over government borrowing and fiscal sustainability, with recent weakness in French sovereign debt spilling over into U.S. rates.
“Whether it is France, the US, Japan, or the UK, there has been a persistent theme of worry that government deficit spending will eventually lead to a reckoning for sovereign debt markets,” BMO’s Ian Lyngen wrote in a note late Monday, adding that demand for Treasury supply remains “an open question.”
Yields on the 10-year Japanese government bond were also hovering around their highest since 1996, adding around 1 basis point to 3.101%
— Lee Ying Shan
Oil rises as investors assess Mideast developments
Oil rose early Tuesday, as investors continue to assess developments in the Middle East amid concerns over supply disruptions.
Futures for international benchmark Brent crude for December delivery gained 0.42% at $100.74 a barrel. U.S. West Texas Intermediate futures for November added 0.32% at $89.72 per barrel.
Saudi Aramco‘s chief executive Amin Nasser said Monday that global oil stockpiles could take two years to rebuild. The squeeze on supplies could yet get worse as the Iran-U.S. conflict drags on, Nasser cautioned.
“Oil remains caught between a still-elevated geopolitical premium and growing expectations that supply conditions could become less restrictive,” said Naeem Aslam, chief investment officer at Zaye Capital Markets.
— Justina Lee
Foxconn shares jump following record September sales
Foxconn shares rose as much as 4% Tuesday morning after the company reported September revenue of 1.16 trillion New Taiwan dollars ($36.5 billion), its highest on record and the first time the figure has topped NT$1 trillion.
The company’s third-quarter revenue came in at NT$3.03 trillion, up 47.12% from a year earlier.
Foxconn attributed the strong performance to growth across its smart consumer electronics, components and other products, cloud network products, and computing products businesses.
— Jenny Lee
Asia markets open mostly higher, tracking Wall Street gains
Asia markets opened mostly higher Tuesday. Japan’s Nikkei 225 rose 0.22% at the open, while the broader Topix added 0.26%. South Korea’s Kospi was 0.15% lower, while the small-cap Kosdaq gained 1.91%.
Australia’s S&P/ASX 200 advanced 0.36%.
Mainland China markets remain closed for a holiday.
— Lee Ying Shan
Asia markets set to rise after Wall Street gains despite elevated Treasury yields
Asian stocks were poised to open higher Tuesday, tracking gains on Wall Street as AI-linked stocks powered the Nasdaq Composite to a fresh record high, even as U.S. Treasury yields remained elevated.
Japan’s Nikkei 225 was set to rise at open, with its Chicago and Osaka futures contracts last at 70,220 and 70,180 respectively, compared with the index’s previous close of 69,946.86.
Futures for Hong Kong’s Hang Seng index stood at 24,266, higher than its last close of 24,040.34.
Australia’s S&P/ASX 200 added 0.38% at the open.
Mainland China markets remain closed for a holiday.
— Lee Ying Shan
Tech sector marks record close
The tech sector of the S&P 500 ended Monday’s trading at a record close.
Information technology jumped 0.7% in the session as investors snapped up shares of companies tied to the artificial intelligence trade. Memory stocks Western Digital and Seagate Technology rose 6% and 4%, respectively. Nvidia added 2%, as did Broadcom.
The gains come at a time when tech continues to dominate the overall market. The Invesco S&P 500 Equal Weight ETF (RSP) is down 3.6% in the past month, while the S&P 500 has gained 0.7%.
— Ananya Chetia
