S&P 500 hits new record as tech stocks dominate the market.

The S&P 500 climbed 0.6 percent on Tuesday to reach an all-time intraday high of 7844.52, surpassing its previous peak of 7,830 set on August 13. The benchmark index closed above 7,800 for the first time, extending its year-to-date gain to more than 14 percent. The Nasdaq composite also touched record territory alongside the broader market.

The rally remains concentrated in a small group of technology stocks. Nvidia, Alphabet, Amazon, Apple, Meta, Microsoft, and Tesla comprise more than 34 percent of the S&P 500's market capitalization. JJ Kinahan, senior vice president of retail and alternative investments at Cboe Global Markets, noted that this dominance shapes the index's performance.

When you consider that much girth among a small handful of stocks, it's apparent how much these stocks' daily movements dictate the direction of the S&P 500 and the Nasdaq, both of which are in record territory again today, Kinahan said.

Investors continue backing ambitious technology bets despite higher borrowing costs and energy prices. Amazon projected about $200 billion in capital expenditures across its businesses in 2026, citing growth opportunities in artificial intelligence, chips, and robotics. Earlier this year, SpaceX raised $75 billion in the largest initial public offering ever and began trading June 12, signaling sustained appetite for high-growth companies.

The market's advance comes amid persistent economic friction. Oil prices surged above $100 a barrel in early September after dipping below $70, following an initial spike in early March caused by Iran conflict disruptions to energy supplies through the Strait of Hormuz. Simultaneously, the 10-year Treasury yield rose above 5.3 percent on Monday, reaching levels not observed since 2002. The Federal Reserve raised its benchmark rate in mid-September for the first time in over three years and signaled additional increases were expected.

Analysts warn that the market's narrow leadership could pose risks if economic conditions shift. Shawn Snyder, economic strategist at Potomac Fund Management, cautioned that weakening market breadth might persist if inflation fails to ease. Snyder emphasized the disconnect between corporate earnings and broader macro indicators.

At the end of the day, oil and bond yields can be correlated, but so is the stock market and profits. And if the profits are there, which they have been, the stock market is going to be resilient, even if the economy is a bit more mixed, Snyder said.

The Federal Reserve is scheduled to release minutes from its September meeting on Wednesday.