S&P 500 and Nasdaq Hit New Highs as Apple Shares Surge on AI News

The stock market hit new highs on Tuesday as the S&P 500 and the Nasdaq Composite surged to record levels. The key driver behind this rally was the surge in Apple shares, which rose 7.26% after the company announced new AI features and operating systems that are expected to drive a wave of iPhone upgrades.

Investors were quick to rotate out of Nvidia and into Apple, pushing the tech giant to a new all-time high. The positive sentiment was further boosted by a well-received US government bond sale, raising hopes of potential rate cuts by the Federal Reserve later this year.

As attention now turns to the Federal Reserve policy meeting and the release of the May CPI numbers, investors are eagerly awaiting further guidance on the future direction of interest rates. Despite strong demand for US bonds, Fed funds futures are currently indicating no chance of a rate cut at this week’s meeting.

In terms of sectors, all sectors except for Tech and Communication Services closed lower, with Financials being the worst performer. Meanwhile, in the commodities market, China’s central bank paused its gold buying streak in May after 18 months, coinciding with a record rally in gold prices driven by safe-haven demand.

Looking ahead, the SPI futures are pointing to a 0.5% fall, while the Australian dollar is buying 66.06 US cents. In commodities, gold has lost 0.02%, silver has dropped 2.15%, copper has fallen 0.74%, and oil has gained 0.21%.

Overall, global markets closed mixed, with European markets lower and Asian markets showing mixed results. Yesterday, the Australian share market closed 1.33% lower.

As always, it’s important to do your own research and seek independent financial advice before making any investment decisions. Stay tuned for more updates on the market as events unfold.