US stock indices delivered another impressive performance on Tuesday, with the S&P 500 gaining 0.3% to close at a new all-time high for the 31st time this year. The Nasdaq composite also climbed to a record high for the seventh consecutive day, adding less than 0.1%. The Dow Jones Industrial Average saw a slight increase of 0.1%. The stock market’s positive momentum was driven by declining yields in the bond market. Treasury yields dropped following a report indicating that US retail sales increased in May, albeit falling short of economists’ projections. Notably, Nvidia, a tech giant, continued its stellar performance, rising by 3.5%, surpassing other major tech companies to become the world’s most valuable publicly traded entity. This surge significantly contributed to the Nasdaq’s record-breaking streak. Among Tuesday’s top performers was La-Z-Boy, a furniture maker, which surged 19.4% following strong quarterly earnings exceeding expectations. Silk Road Medical experienced a remarkable 24% jump after Boston Scientific announced its acquisition of the medical device company in a cash deal valued at approximately $1.26 billion, inclusive of cash holdings. The stock market’s record-setting performance coincided with the release of US retail sales data for May, which revealed that sales fell short of analysts’ expectations. Gasoline stations saw the most significant monthly decline in sales, down 2.2%, while furniture and home furnishing stores also witnessed a dip in sales from April. Despite the disappointing consumer demand figures, investors remain optimistic that a slowing economy could prompt the Federal Reserve to reduce interest rates. Following the release of the retail sales data, traders increased their bets on the Federal Reserve cutting rates at least twice this year, according to data from CME Group. Currently, Federal Reserve officials are projecting one or two rate cuts in 2024. The yield on the 10-year Treasury dipped to 4.21% from 4.29% on Monday. The two-year yield, more sensitive to Federal Reserve expectations, fell to 4.70% from 4.77%.
