US stocks close at record highs as tech gains, lower yields lift markets

US stocks closed higher Tuesday, with the S&P 500 finishing above 7,800 for the first time as technology shares advanced and Treasury yields eased.

The S&P 500 gained 44.98 points, or 0.58%, to a record close of 7,818.93, while the Nasdaq composite added 122.48 points, or 0.45%, to a record high of 27,599.79.

The Dow Jones industrial average rose 253.38 points, or 0.49%, to 51,521.28.

Chipmakers helped drive the rally amid continued optimism over demand for artificial intelligence technology. During the session, Marvell Technology climbed around 5.8%, Broadcom gained 3.7%, and Advanced Micro Devices rose 2.8%.

The benchmark 10-year Treasury yield eased around three basis points to 5.281%, helping relieve pressure on stock valuations after yields reached multiyear highs on Monday.

On the economic front, the US goods and services trade deficit widened 13.7% to $105.6 billion in August from a revised $92.8 billion in July, according to data released Tuesday by the Commerce Department.

Imports jumped 4.3% to $420.8 billion, outpacing a 1.4% rise in exports to $315.2 billion. Capital goods imports increased $6.2 billion, including a $2.4 billion rise in semiconductor imports.

Investors are now awaiting minutes from the Federal Reserve’s September meeting, due Wednesday, for further insight into policymakers’ decision to raise interest rates and their assessment of inflation risks.

Oil prices settled little changed, with Brent crude rising 0.26% to $100.58 per barrel and West Texas Intermediate edging up 0.01% to $89.44.

European stocks finish higher

European markets also closed Tuesday with gains, with the pan-European STOXX 600 rising 0.48% to 636.63.

Britain’s FTSE 100 gained 0.42% to 10,541.69, while Germany’s DAX advanced 0.77% to 25,449.19.

France’s CAC 40 climbed 0.40% to 7,865.07.

Italy’s FTSE MIB gained 0.87% to 51,261.40, while Spain’s IBEX 35 rose 0.75% to 19,444.20.