Markets Edge Higher to Fresh Records Ahead of NVIDIA Earnings and PCE Data

The stock market managed to extend its rally today, with modest but broad-based gains pushing the S&P 500 (+0.2%) to both a new intraday record at 6,487.03 and a record closing high of 6,481.40. The Nasdaq Composite (+0.2%) and DJIA (+0.3%) also finished in the green, while small- and mid-cap stocks outperformed—the Russell 2000 and S&P Mid Cap 400 each added 0.7%—as firm expectations for a September rate cut provided an extra boost.

Though the advance was not particularly dramatic in size, its breadth underscored a cautious optimism. Market participants are balancing the upcoming release of NVIDIA’s earnings report tomorrow and Friday’s PCE inflation update, both seen as near-term catalysts. Breadth figures reflected this constructive tone, with advancers outpacing decliners by more than an 8-to-5 margin on the NYSE and 4-to-3 on the Nasdaq.

Sector performance leaned positive, with eight of the eleven S&P 500 groups finishing higher. Energy (+1.2%) led the pack, supported by a 1.4% rise in crude oil prices to $64.14 per barrel. Information technology (+0.5%) steadily improved through the day, helped by broad strength in software names, while communication services (-0.1%) was the lone decliner. Health care and industrials finished flat.

Software stocks were the clear bright spot within tech. MongoDB (MDB) surged nearly 38% after an upbeat earnings report, fueling strength in peers such as Datadog (+4.3%), ServiceNow (+2.7%), and Salesforce (+2.6%). Semiconductor stocks, meanwhile, traded more in line with the market as a whole—the PHLX Semiconductor Index added 0.3%—even as NVIDIA (-0.1%) slipped slightly ahead of tomorrow’s highly anticipated results.

Retail also enjoyed some momentum, with Kohl’s (KSS) surging nearly 24% after topping earnings expectations. That strength helped the SPDR S&P Retail ETF gain 1.8%, though PVH and Abercrombie & Fitch dipped despite posting their own beats.

Away from corporate earnings, headlines remained subdued but still carried weight. Investors continued to digest the fallout from President Trump’s dismissal of Fed Governor Lisa Cook, a move likely to spark legal challenges. New York Fed President John Williams, speaking in a CNBC interview, praised Cook’s reputation but declined to comment on the dismissal itself. On policy, he said that gradual rate cuts may be appropriate if inflation trends evolve as anticipated, though incoming data will guide decisions.

The CME FedWatch tool kept the odds of a September 25-basis point cut steady at 87.2%. Williams added that current PCE inflation readings include 40–50 basis points tied directly to tariffs, highlighting the market’s sensitivity to Friday’s PCE report.

With rate cut expectations largely intact, the focus now shifts to NVIDIA’s earnings, which could set the tone for tech sentiment and broader market direction in the days ahead.

Our FTinvest 11 portfolio ended today with a slight pullback, dipping 0.08% to close at 843.49. After opening the session with a neutral tone, the index spent much of the day fluctuating near its baseline. Attempts to build momentum lacked conviction, leaving the portfolio without a meaningful push higher.

Despite the modest decline, the index held comfortably above the 840 mark, preserving much of last week’s strength. The minor move underscores a market environment still balancing between profit-taking and cautious optimism. While broader benchmarks showed mixed results, FTinvest 11’s resilience reflects underlying stability, even on a quieter trading day.