05.08.202613:37:29UTC+00S&P 500 and Dow Rise to New Records

US stocks extended their recent rally on the back of an improving macroeconomic backdrop and solid corporate earnings. The S&P 500 rose 0.6% and the Dow gained 400 points, with both indexes closing at record highs, while the Nasdaq advanced 0.3%. Treasury yields held onto their pullback from earlier in the week as US officials continued to signal progress toward a deal with Iran that could restore trade flows from the Middle East, helping to contain energy-driven inflation.

Credit-sensitive sectors, including banks and AI-focused hyperscalers, largely preserved their gains from the week. Arista Networks jumped 7% after reporting revenue that topped expectations. Eli Lilly surged 9% to lead the Dow after beating revenue forecasts and raising its full-year guidance. In contrast, SpaceX fell 13%, wiping out the prior session’s surge, as concerns over rapidly rising AI-related capital expenditures overshadowed its revenue beat; a sizable tranche of IPO shares held by primary buyers is also set to come onto the market. AMD declined 5% despite doubling its datacenter revenues.