The S&P 500 reached an all-time high Tuesday as investors returned to major technology stocks, new AI spending plans lifted market sentiment, and an early drop in oil prices eased concerns about inflation. The benchmark index rose 0.58% to close at 7,818.95 on Oct. 6, while the Nasdaq Composite gained 0.45% to a record 27,599.79.
The rally built on gains from the previous session and came as Treasury yields moved lower from levels not seen in more than two decades. Oil prices also fell sharply during the trading day, with Brent crude dropping below $98 a barrel and U.S. crude trading near $87.
The decline helped ease concerns that higher energy costs could keep inflation elevated and force the Federal Reserve to raise interest rates again this month. Crude prices later recovered much of the decline before settlement.
AI demand helps lift the S&P 500 to an all-time high
AI stocks were among the market’s strongest drivers. Nvidia advanced as its market value moved closer to $6 trillion, while Marvell Technology rose after increasing its long-term revenue forecast on expectations for stronger demand for custom chips used in AI data centers.
BREAKING: 🇺🇸 The S&P 500 closes +55 points higher, adding +$500 billion in market cap today.
The S&P 500 is now just 0.5% away from a new record high. pic.twitter.com/KKmF40qogx
— The Market Journal (@MarketJournalX) October 5, 2026
AMD also gained after CEO Lisa Su said the company planned to increase chip supply in 2027 to meet growing AI demand. The spending boom extended beyond semiconductors.
Google announced agreements with Constellation Energy covering 3,590 megawatts of electricity, including nuclear power, as technology companies seek additional energy supplies for expanding data centers.
The broader economic picture also showed the scale of investment. U.S. capital-goods imports reached a record $146.4 billion in August, supported partly by semiconductor and industrial equipment purchases connected to AI infrastructure.
Lower oil and weaker jobs data reshape Fed expectations
Investors were also responding to a sharp change in expectations for Federal Reserve policy. The September jobs report showed employers added only 29,000 jobs, well below forecasts, while the unemployment rate increased to 4.2%. Markets subsequently reduced expectations for another Fed rate increase at the central bank’s October meeting.
Oil provided another source of relief after Middle East exports improved and G7 countries agreed to release 100 million barrels of crude and diesel from emergency reserves. Brent had fallen below $98 during Tuesday’s session before recovering to settle near $100.60, while U.S. crude ended around $89.44.
Corporate earnings expectations also supported stocks. Analysts surveyed by LSEG expected third-quarter earnings for S&P 500 companies to rise 30.6% from a year earlier, with technology and energy companies expected to post particularly strong growth.
The rally was not uniform across the market. The Russell 2000 fell 0.6%, and market breadth on the Nasdaq remained narrow despite the record close.
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