The S&P 500 climbed to another record high on Tuesday, driven by a rally in technology stocks and optimism that negotiations between the U.S. and Iran could eventually lead to an end to the conflict.
The benchmark index gained 0.61% to close at 7,519.12. The May 27 Polymarket contract implied a roughly 61% probability that the S&P 500 would open higher on Wednesday.
Why That Number Matters
Technology stocks continue to power the market’s advance, helping push the S&P 500 and Nasdaq Composite to fresh intraday and closing records.
Micron Technology’s (NASDAQ:MU) shares surged 19% on Tuesday, topping $1 trillion in market capitalization for the first time and lifting sentiment across the semiconductor sector. Fellow memory-chip makers Seagate Technology (NASDAQ:STX) and Western Digital (NASDAQ:WDC) also posted strong gains.
Investors are also closely monitoring developments in the Middle East after President Donald Trump said talks with Iran to end the war were “proceeding nicely,” even as the U.S. carried out what it described as “self-defense” strikes in southern Iran during the ongoing ceasefire.
The Bull Case
A strong earnings season, continued enthusiasm around artificial intelligence spending and hopes for easing geopolitical tensions have helped drive stocks to repeated record highs.
Market participants remain focused on the large-scale AI infrastructure buildout, which continues to support expectations for earnings growth across technology companies.
Investors will also be watching earnings from Bath & Body Works (NYSE:BBWI), Dick’s Sporting Goods (NYSE:DKS), Manchester United (NYSE:MANU) and Abercrombie & Fitch (NYSE:ANF) before Wednesday’s opening bell.
Meanwhile, oil prices remain well above levels seen earlier this year, and traders are increasingly pricing in the possibility that the Federal Reserve could keep policy tighter for longer if inflation pressures persist.
S&P 500 futures were little changed early Wednesday, edging up just 0.13%.
How The Previous Bet Played Out: The S&P 500 opened Tuesday at 7,511.79, above Friday’s close of 7,473.47, meaning the May 26 Polymarket bet resolved “Up.” The contract recorded approximately $121,320 in traded volume before settling.
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