Closing bell: Dow Jones and Co. with records - Rally picks up speed ahead of Big Tech figures

Wall Street is unstoppable. The Nasdaq 100 and S&P 500 are setting new records, while investors are betting on the tech giants. Microsoft, Alphabet, Meta, Apple, and Amazon are releasing their results this week. Nervousness is rising – and so is the desire not to miss the next rally.

The record rally on the US stock markets continued on Tuesday. "The AI ​​party in New York continues," commented Christine Romar, Head of Europe at broker CMC Markets. Ahead of the quarterly reports from its most important members, the Nasdaq continues to rise. Investors don't want to miss out on another rally boost should Microsoft, Alphabet, and Meta again exceed expectations on Wednesday, and Apple and Amazon again on Thursday.

In addition, the US Federal Reserve is expected to cut interest rates by 0.25 percent. This decision is also due midweek.

The Dow jumped above 47,900 points for the first time at the start of trading. The most well-known Wall Street index closed the day with a gain of 0.34 percent to 47,706.37 points. The S&P 500 crossed the 6,900 point mark for the first time before closing up 0.23 percent at 6,890.89 points. The Nasdaq 100 surpassed the 26,000 point mark, gaining 0.74 percent to 26,012.16 points.

Economists expect the Fed to cut interest rates for the second time this year on Wednesday, citing increasing risks in the US labor market. However, the decision comes in a challenging environment, as hardly any economic data has been released recently due to the closure of numerous federal agencies in the wake of the budget dispute. "Even if the US labor market is likely to weaken further, the overall economy should not tip into recession in the near future," predicts portfolio manager Bruno Lamoral of the asset manager DPAM, who considers the stock market environment in the United States to be generally healthy.

The reporting season has also shown that the strength of US companies is not limited to the tech sector, he wrote. Positive earnings revisions are occurring far beyond this sector, which is why the stock market rally has been generally strong recently. With the exception of the consumer staples sector, all US sectors are currently trading above their 200-day moving average, which reflects their longer-term performance.

Contains material from dpa-AFX