US close: S&P 500 and Nasdaq set new highs as eyes turn to Nvidia

US stocks edged higher on Tuesday, with the S&P 500 and Nasdaq both reaching new heights, though gains were modest as investors showed caution ahead of Nvidia's blockbuster earnings and minutes from the latest Federal Reserve policy meeting.

Despite a subdued start, the S&P 500 rose 0.25% to a new high of 5,321.41 – its 24th record close of the year so far – while the Nasdaq Composite gained 0.22% to a fresh peak of 16,832.62.

Meanwhile, the Dow finished 0.17% higher at 39,872.99. The index pulled back the previous session after closing above the 40,000 mark for the first time last Friday.

"Today provides markets with their final chance to position themselves ahead of tomorrow’s pre-open release of earnings from Nvidia, with the tech giant providing perhaps the final major hurdle to overcome for first quarter earnings season," said Joshua Mahony, chief market analyst at Scope Markets.

On the macro front, Federal Reserve governor Christopher Waller said he needs to see "several more months" of good inflation data before even considering backing interest rate cuts, while Atlanta Fed president Raphael Bostic said he expects to see inflation continuing to ease but cautioned that the central bank must be careful when it comes to its first rate move.

All eyes on Nvidia

Chipmaker Nvidia, which reports quarterly results on Wednesday, is largely seen as the posterchild for the massive surge in US equity markets so far this year, as investors continue to pour into names in the AI space. The stock rose 0.6% on Tuesday to a new record high, having gained 20% over the past month.

"This year is expected to see Nvidia attempt to double its earnings per share, with the $12.96 reported for 2023 expected to surge into a figure closer to $25.15," Mahony from Scope Markets said. "However, the dramatic gains seen over the past year provide a tough backdrop for the business to operate within, as double-digit quarterly gains are the bare minimum."

JPMorgan Chase & Co was bouncing back after dropping sharply on Monday on the back of comments from boss Jamie Dimon, who hinted that he may leave the firm within five years (earlier than expected) and said that the company wouldn't be repurchasing as much stock at current levels.

Shares in home improvement retailer Lowe's were lower despite better-than-expected first-quarter earnings and revenue results, while cybersecurity company Palo Alto Networks dropped after underwhelming with in-line current-quarter guidance.

On the upside, retailer Macy's topped earnings expectations with its latest quarterly numbers as its new turnaround plan started to bear fruit, while Autozone missed estimates with net sales and earnings growth.

Dow Jones - Risers

International Business Machines Corporation (CDI) (IBM) $173.47 2.09%
JP Morgan Chase & Co. (JPM) $199.52 2.01%
Goldman Sachs Group Inc. (GS) $470.41 1.61%
Walmart Inc. (WMT) $65.15 1.51%
Unitedhealth Group Inc. (UNH) $523.75 1.22%
Nike Inc. (NKE) $92.82 1.14%
Microsoft Corp. (MSFT) $429.04 0.87%
Apple Inc. (AAPL) $192.35 0.69%
Procter & Gamble Co. (PG) $168.45 0.62%
Coca-Cola Co. (KO) $62.96 0.54%

Dow Jones - Fallers

Walgreens Boots Alliance, Inc. (WBA) $16.68 -6.40%
3M Co. (MMM) $103.19 -1.97%
Verizon Communications Inc. (VZ) $39.62 -1.25%
Salesforce.Com Inc. (CRM) $283.76 -1.15%
Intel Corp. (INTC) $31.74 -1.12%
Caterpillar Inc. (CAT) $359.07 -1.01%
Boeing Co. (BA) $184.78 -0.98%
Visa Inc. (V) $275.98 -0.93%
McDonald's Corp. (MCD) $265.87 -0.75%
Chevron Corp. (CVX) $159.97 -0.73%

S&P 500 - Risers

Macy's Inc. (M) $20.09 5.13%
Fluor Corp. (FLR) $40.88 4.85%
Dollar General Corp (DG) $142.60 3.46%
Johnson Controls International plc (JCI) $73.07 3.17%
Hanesbrands Inc. (HBI) $4.99 3.10%
Macerich Co (MAC) $15.72 2.76%
HP Inc (HPQ) $32.69 2.73%
Corning Inc. (GLW) $36.48 2.70%
Bread Financial Holdings, Inc. (BFH) $42.53 2.66%
Eli Lilly and Company (LLY) $803.53 2.55%

S&P 500 - Fallers

Keysight Technologies Inc. (KEYS) $146.37 -8.38%
Walgreens Boots Alliance, Inc. (WBA) $16.68 -6.40%
Equifax Inc. (EFX) $238.05 -5.42%
Union Pacific Corp. (UNP) $234.95 -3.56%
AutoZone Inc. (AZO) $2,820.83 -3.53%
American Airlines Group (AAL) $14.03 -3.37%
Seagate Technology Plc (STX) $93.60 -3.32%
Globe Life Inc. (GL) $83.33 -3.12%
CenturyLink Inc. (LUMN) $1.26 -3.08%
J.B. Hunt Transport Services Inc. (JBHT) $159.27 -2.94%

Nasdaq 100 - Risers

Tesla Inc (TSLA) $186.60 6.66%
Gen Digital Inc. (GEN) $25.05 2.37%
Lam Research Corp. (LRCX) $964.00 2.33%
eBay Inc. (EBAY) $52.17 1.81%
QUALCOMM Inc. (QCOM) $200.85 1.56%
Netflix Inc. (NFLX) $650.61 1.53%
Booking Holdings Inc. (BKNG) $3,822.34 1.43%
Western Digital Corp. (WDC) $74.01 1.31%
Dollar Tree Inc (DLTR) $114.70 1.08%
Costco Wholesale Corp. (COST) $800.93 1.00%

Nasdaq 100 - Fallers

Walgreens Boots Alliance, Inc. (WBA) $16.68 -6.40%
NetEase Inc. Ads (NTES) $98.90 -5.57%
Qurate Retail Inc. (QRTEA) $0.71 -5.22%
JD.com, Inc. (JD) $33.29 -4.20%
Baidu Inc. (BIDU) $105.14 -3.43%
American Airlines Group (AAL) $14.03 -3.37%
Sirius XM Holdings Inc (SIRI) $2.89 -3.34%
Seagate Technology Plc (STX) $93.60 -3.32%
J.B. Hunt Transport Services Inc. (JBHT) $159.27 -2.94%
Expedia Group Inc. (EXPE) $111.71 -2.28%