S&P 500 climbs to record highs on earnings optimism

Nifty22, 776.10220.35. Motilal Oswal Midcap Fund Direct-Growth.

Key points

• The Dow Jones Industrial Average rose 263.67 points, or 0.49%, to 51, 531.57.
• Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate.
• The Commerce Department's report indicated the US trade deficit grew by 13.7% as imports rose to a record high.
• S&P 500 record highsUS trade deficitConstellation Energy power dealincreasing chip supply demandUS Treasury yieldsFederal Reserve rate hikeoption care health.
• The broad rally pushed the S&P 500 and the Nasdaq to all-time closing highs.

Nifty22, 776.10220.35. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now.

US stocks: S&P 500, Nasdaq reach record closing highs as focus pivots to earnings. ReutersLast Updated: Oct 07, 2026, 01: 44: 00 AM IST.

Notably, the US stock market finished on a high note, buoyed by stabilizing crude rates and easing Treasury yields, offering much-needed relief to investors. The S&P 500 and Nasdaq celebrated record closing highs, indicative of a widespread market upturn. With third-quarter earnings just around the corner, excitement is building among analysts and investors, especially with notable announcements from firms like AMD and Constellation Energy. Listen to this article in summarized format. Unlock AI Briefing and Premium Content. New Year Offer 24 Hours Left. Subscribe Now Already a member? Sign In.

US stocks concluded higher on Tuesday as crude costs steadied and US Treasury yields eased, offering some reprieve from reservations that have preoccupied investors in recent weeks, and allowing markets to turn their attention to the approaching third-quarter reporting season. While the Nasdaq Composite gained 127.43 points, or 0.46%, to 27, 604.74, according to preliminary data, the S&P 500 gained 46.52 points, or 0.60%, to end at 7, 820.47 points. The Dow Jones Industrial Average rose 263.67 points, or 0.49%, to 51, 531.57. As on 07 Oct 2026, 01: 26 AM IST.

S&P 500 Top Gainers. Constellation Energy 300.41 (12.25%). Corteva 13.81 (11.42%). Vistra 160.43 (10.73%). NRG Energy 103.64 (7.07%). S&P 500 Top Losers. Seagate Technology Hldgs 805.99 (-9.14%). Coterra Energy 32.56 (-8.62%). Moderna 186.96 (-8.00%). Western Digital 410.61 (-7.03%).

Notably, the broad rally pushed the S&P 500 and the Nasdaq to all-time closing highs. When oil rates stabilize or move lower, "that causes yields to move down because there's less anxiety about energy-driven inflation, which in turn is helping lift stocks higher, " stated Oliver Pursche, senior vice president at Wealthspire Advisors in New York. "This has been the narrative of the market for the last couple of weeks." The AI trade is particularly much alive, with the Philadelphia SE Semiconductor Index gaining ground. Expenditures on AI-related infrastructure were reflected in international trade data. It indicated imports of capital goods rose by 4.4% in August. Live Events.

Meanwhile, the Commerce Department's report indicated the US trade deficit grew by 13.7% as imports rose to a record high. On monthly and annual bases, imports have grown by 4.3% and 28.4%, respectively, reflecting robust domestic demand that could exacerbate inflation pressures, particularly against the backdrop of war-related supply constraints. Even so, financial markets are at present pricing in a diminishing probability that the US Federal Reserve will implement its second consecutive rate hike at this month's monetary policy gathering, according to CME's FedWatch tool. Fed rate hike bets have been responsive to oil rates. It have surged against the backdrop of the Iran war, threatening to morph into broader cost pressures. But supply worries eased after the Group of Seven countries reached an agreement to release emergency diesel and crude stockpiles, helping to stabilize front-month WTI and Brent crude futures. "We don't expect (the Fed) to do anything at the next meeting, " remarked Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "But I think they're in a gradual hiking cycle." "High oil prices have hit a broad range of consumers, " Ghriskey continued. "That's one of the reasons for the recent Fed hike." Third-quarter earnings season kicks off next week, with a number of high-profile financial firms anticipated to report next Tuesday. Analysts at present expect annual S&P 500 earnings expansion of 30.6%, in aggregate, for the July-to-September period, led by an projected 114.7% jump in energy earnings, followed by a 66.5% estimated surge in tech results, according to LSEG. Marvell Technology climbed after the chip designer's 2028 revenue forecast hike due to robust demand for its data center chips. Chipmaker AMD gained after CEO Lisa Su remarked the business intends to substantially rise chip supply in 2027 to meet booming AI demand. Constellation Energy jumped after Alphabet entered into a 3, 590-megawatt power accord with the business. Option Care Health soared after drug distributor McKesson and private equity firm Clayton Dubilier & Rice agreed to purchase the infusion therapy provider in a agreement worth regarding $5.8 billion, including debt.

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Taken together, the developments around s& P 500 climbs to record highs on earnings optimism point to a situation that is still moving, and the coming days should bring more clarity.