S&P 500 climbs to another record close Tuesday as Nvidia’s market cap tops Microsoft: Live updates

Stocks rose on Tuesday as Nvidia surpassed Microsoft as the most valuable public company.

The S&P 500 added 0.25% to close at 5,487.03 and a new record. The Nasdaq Composite inched up 0.03% to end at 17,862.23, while the Dow Jones Industrial Average rose 56.76 points, or 0.15%, to settle at 38,834.86.

— Samantha Subin

BlackRock debuted a new active ETF on Tuesday that shares DNA with a highly rated mutual fund.

The BlackRock High Yield ETF (BRHY) has the same strategy and portfolio managers as the BlackRock High Yield mutual fund, which has a four star rating from Morningstar and a yield above 6%. The ETF also comes at a lower price point for investors.

BlackRock is not alone in pushing further into the high yield space. The fund is one of several high yield ETFs that have hit the market this quarter, and comes with Fed rate cuts looming and some hints at a slowdown in the U.S. economy.

— Jesse Pound

David Kostin, Goldman Sachs' chief U.S. equity strategist, joined CNBC Tuesday morning to discuss his raised year-end expectations for the market.

Kostin told clients on Monday that he expects the S&P 500 to now conclude 2024 at 5,600, 400 points higher than he previously forecasted. This call is tied in part to rapid earnings growth for Microsoft, Nvidia, Alphabet, Amazon and Meta.

The five companies are "really driving the market," Kostin said. "It's really the story for this year."

CNBC Pro subscribers got the inside scoop on Kostin's call on Monday. Here's the stories you may have missed:

• Goldman raises S&P 500 year-end forecast, citing strong earnings growth
• Goldman gives its four scenarios for year-end, from a megacap super rally to a recession-driven decline

— Alex Harring

Over the past 20 sessions, seven have been positive for the S&P 500 despite the majority of member stocks finishing lower. That has happened just three times since 1990, according to Bespoke Investment Group.

The last time more days in a period this long saw a divergence: August 2020, when megacap technology was believed to be a major beneficiary from the Covid-19 pandemic, per Bespoke.

— Alex Harring

Billionaire investor Steve Cohen's Point72 plans to launch a separate, artificial intelligence-focused hedge fund to capitalize on the boom, according to a person close to the firm's plans.

The new long/short equity fund, to be launched later this year or early 2025, will be focused on AI and AI-related hardware, the person said.

The firm is aiming to raise $1 billion, with Cohen himself and Point72 employees expected to contribute, the person added.

Cohen recently came out as a long-term AI bull. He has called AI a "really durable theme" for investing, comparing the rise to the technological developments in the 1990s.

— Yun Li

Nvidia shares gained more than 3% to surpass Microsoft as the most valuable public company.

The chipmaker's market value currently sits at roughly $3.3 trillion following a 172% surge since the start of the year. Nvidia first topped a $3 trillion market capitalization earlier this month, and surpassed Apple in market value.

— Kif Leswing, Samantha Subin

Federal Reserve Governor Adriana Kugler said Tuesday that she has confidence inflation is going to continue to move in the right direction and allow for a reduction in interest rates later this year.

"While I remain cautiously optimistic that inflation is coming down, it is still too high, and it is moving down only slowly. I believe that policy has more work to do," Kugler said in remarks delivered at the Peterson Institute for International Economics in Washington.

"I believe economic conditions are moving in the right direction. If the economy evolves as I am expecting, it will likely become appropriate to begin easing policy sometime later this year," she added.

— Jeff Cox

Here are the stocks on the move midday:

• La-Z-Boy — The stock soared more than 19% after the furniture company topped Wall Street expectations for the fiscal fourth quarter. La-Z-Boy reported adjusted earnings of 95 cents per share on revenue of $554 million. This is above earnings estimates of 70 cents per share on revenue of $516 million, according to analysts polled by LSEG.
• Rocket Lab USA — Shares of the space company jumped around 9% after it signed a ten-launch deal with Japanese Earth observation company Synspective. The new launches are set to take place between 2025 and 2027.
• e.l.f. Beauty — The beauty company rose more than 7% after Canaccord Genuity said the stock is positioned for strong growth. The firm upped its price target on the stock to $250 from $214, which implies nearly 30% upside from Monday's close.

Read the full list here.

— Sean Conlon

Shares of Cedar Fair and Six Flags rallied after the theme park operators announced their merger would finish July 1.

The company will operate under the name Six Flags Entertainment Corporation and use the ticker "FUN." Six Flags also announced Tuesday that it will issue a special dividend of $1.53 per share for investors who held the stock through the deal's closing.

Cedar Fair shares climbed 7% in midday trading, while Six Flags added around 5%. Both touched their highest points in at least a year during Tuesday's session.

The plan was first announced in November.

— Alex Harring, Peter Schacknow

Boston Federal Reserve President Susan Collins said Tuesday that recent inflation data has been encouraging, though not enough to move the needle yet on monetary policy.

"It is too soon to determine whether inflation is durably on a path back to the 2 percent target. Uncertainty remains high — and the volatility of monthly data remains elevated, including for inflation," Collins said in remarks delivered in Lawrence, Massachusetts. "We should not overreact to a month or two of promising news, just as it was not appropriate to take too much signal from the disappointing data at the beginning of this year."

Earlier in the day, Richmond Fed President Thomas Barkin told MNI the data is "headed exactly in the right direction," while cautioning that inflation is "not yet at target."

— Jeff Cox

Occidental Petroleum was up more than 1% on Tuesday after a new regulatory filing showed Warren Buffett's Berkshire Hathaway bought more shares in the company, pushing its stake to nearly 29%.

The stock has lagged the broader market, up just 2.3% in 2024.

— Fred Imbert

Ongoing earnings strength for the "Magnificent Seven" will continue to lead the S&P 500 higher, according to Citi. 

Scott Chronert, the bank's head of U.S. equity strategy, increased his year-end S&P 500 target to 5,600 from 5,100. That is nearly a 10% raise and among the highest on Wall Street, according to the CNBC Market Strategist Survey. The new target implies the broad market index gaining 2.3% from where it closed Monday and a 17% gain.

CNBC Pro subscribers can read the full story here.

— Hakyung Kim

Thirty-six S&P 500 stocks were hitting fresh highs on Tuesday, including a spate of semiconductor stocks that continued their recent outperformance. Lam Research and Micron advanced more than 1% and 5%, respectively. Qualcomm shares gained more than 3%.

Other notable stocks were consumer names such as Walmart, as well as burrito chain Chipotle Mexican Grill and big-box store Costco.

Here are some of the other names:

• Best Buy (BBY) trading at levels not seen since February 2023
• Booking Holdings (BKNG) trading at all-time highs back to its initial public offering in April 1999
• Chipotle Mexican Grill (CMG) trading at all-time-high levels back to its IPO in January 2006
• Hilton Worldwide (HLT) trading at all-time highs back to its IPO in December 2013
• Tractor Supply (TSCO) trading at all-time highs back to its IPO in 1994 after being taken private by an LBO in 1982
• Costco (COST) trading at all-time-high levels back to its IPO in December 1985
• Kimberly-Clark (KMB) trading at levels not seen since May 2023
• Walmart Stores (WMT) trading at all-time-high levels back to when it first began trading on the New York Stock Exchange in August 1972
• Broadcom LTD (AVGO) trading at all-time-high levels back through Avago history back to August 2009
• Lam Research (LRCX) trading at all-time-high levels back to its IPO in May 1984
• Micron (MU) trading at all-time highs back to IPO in June 1984
• Oracle (ORCL) trading at all-time-high levels back to its IPO on March 12, 1986
• Qualcomm (QCOM) trading at all-time highs back to its IPO in September 1991

Other names trading at fresh lows include Paramount and EPAM Systems.

— Sarah Min

Energy stocks gained on Tuesday as oil prices rose. The sector was also the best performer in the S&P 500, last up 1.5% on the day.

SLB and Valero Energy led the gains, adding more than 2% each. Occidental Petroleum, Exxon Mobil, Marathon Petroleum and EOG Resources edged up at least 1%.

— Samantha Subin

Stocks opened little changed on Tuesday.

The Dow Jones Industrial Average rose 18 points, or 0.07%. The S&P 500 inched up 0.05%, while the Nasdaq Composite hovered near the flatline.

— Samantha Subin

Broadcom shares gained another 1.5% before the bell, attempting to build on a 5.4% rally from Monday that brought the chipmaker to new highs.

Shares have climbed steadily since the company topped quarterly estimates and announced a 10-for-1 stock split last week. The stock rallied 23% during the trading week and is up about 64% year to date.

Other chipmaking stocks also gained in the premarket, with Qualcomm and Micron Technology last up about 3% each. U.S.-listed shares of Taiwan Semiconductor Manufacturing rose 1.2%, while artificial intelligence darling Nvidia added 0.2%.

— Samantha Subin

Retail sales expanded 0.1% in May from the previous month, a weaker-than-expected gain that signals some weakness in the consumer. Economists polled by Dow Jones expected growth of 0.2%.

— Fred Imbert

Check out some of the companies making headlines in premarket trading:

• La-Z-Boy — Shares jumped more than 9% after La-Z-Boy's latest quarterly results beat expectations. The furniture company posted fiscal fourth-quarter adjusted earnings of 95 cents per share on revenue of $554 million. Analysts polled by LSEG anticipated earnings of 70 cents per share on revenue of $516 million.
• Semiconductor stocks — Chip stocks were higher on Tuesday, adding to the outperformance seen in recent days. Shares of Broadcom soared more than 3%, while Qualcomm and Micron Technology advanced more than 2% each, respectively. Nvidia traded less than 1% higher after Wells Fargo raised its price target on the de facto market leader.
• NextEra Energy — Shares of the utilities firm pulled back nearly 5% after the company said it planned to sell roughly $2 billion worth of equity units at $50 each. The units will comprise both a 5% undivided ownership stake in NextEra Energy Capital Holdings as well as a contract to purchase NextEra stock by June 1, 2027.

Read the full list here.

— Brian Evans

Electric vehicle maker Fisker filed for bankruptcy late Monday after a major cash spend to deliver its "Ocean" SUVs.

"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently," founder Henrik Fisker said in a statement early on Tuesday.

— Fred Imbert

European markets opened higher Tuesday, following a mixed start to the trading week.

The pan-European Stoxx 600 index was up 0.68% in early deals, with all sectors and major bourses trading in the green.

The U.K.'s FTSE index was up 0.56% at 8,187, Germany's DAX was up 0.67% at 18,188, France's CAC 40 was up 0.65% at 7,620 and Italy's FTSE MIB was up 1.07% at 33,253.

— Karen Gilchrist

The market could have a pivotal moment in a few weeks as earnings start to roll in, according to Dan Niles of Niles Investment Management.

Niles said market participants feel a fear of missing out on artificial intelligence. But he said there is going to be harder questions about return on investments in the technology for companies to answer during the next earnings season.

"In a few weeks, we're going to come to a Jesus moment," he said on CNBC's "Fast Money."

That can help bring broadening to the market rally, he said. This is because traders will look more critically at what businesses will be long-term winners from the tech.

"Not every company is Nvidia," Niles said.

— Alex Harring

Since its recent low in late October 2023, the Nasdaq Composite has soared 41.77% through Monday's close.

By contrast, the S&P 500 has climbed 32.93% from its October closing low while the Russell 2000 index of small-cap stocks has risen 23.52%.

The Dow Jones Industrial Average has lagged badly compared to the broad market, advancing 19.62% from its October closing low.

— Scott Schnipper

Chegg shares jumped more than 22% in extended trading after the education technology company announced a restructuring that includes job cuts.

The company said it would slash global headcount by 23%. Chegg also reiterated its goal of EBITDA margins of at least 30% in the 2025 fiscal year.

Chegg shares have plummeted 77% in 2024, putting the stock on track for its fourth straight losing year.

— Alex Harring

Lennar and La-Z-Boy diverged after hours as investors responded to their respective earnings reports.

Homebuilder Lennar fell 2.5% despite a better-than-expected release for the second fiscal quarter. The company earned $3.45 per share on $8.77 billion in revenue, while analysts surveyed by LSEG had forecast $3.24 in earnings per share and $8.52 billion in revenue.

On the other hand, La-Z-Boy jumped more than 10% as earnings came in ahead of Wall Street predictions. The furniture maker recorded 95 cents per share, excluding items, and $554 million in revenue for the fourth fiscal quarter. Analysts polled by LSEG had penciled in just 70 cents in earnings per share and $516 million in revenue.

— Alex Harring

Stock futures were near flat shortly after 6 p.m. ET.

Dow futures rose just 0.1%. S&P 500 and Nasdaq 100 futures were also both little changed.

— Alex Harring