The S&P 500 and the Nasdaq Composite closed at record highs on Tuesday as renewed enthusiasm around artificial intelligence lifted US equities, despite months of pressure from rising interest rates, elevated bond yields, and crude oil prices near $100 a barrel.

The S&P 500 rose 0.58% to finish at 7,818.95, while the Nasdaq Composite gained 0.45% to close at 27,599.79. The Dow Jones Industrial Average added 0.49% to 51,521.04, leaving it just over 5% below its August record.

The advance extends a rally that has persisted through a challenging macroeconomic backdrop. The Federal Reserve raised interest rates by 25 basis points in September, its first increase since 2023, while the war in Iran pushed crude prices above $100 a barrel and helped drive long-term Treasury yields to their highest levels in more than two decades.

Even so, the S&P 500 has climbed approximately 14.2% since the beginning of the year, while the Nasdaq has gained roughly 18.7%. Much of the advance has been led by technology companies positioned to benefit from the continued expansion of AI infrastructure.

AI Infrastructure Names Power the Rally

Nvidia, the world's largest company by market capitalization, has been among the biggest contributors to the rally. The chipmaker approached a $6 trillion valuation on Tuesday after reaching a new all-time high, while other companies tied to AI infrastructure continued to advance. Because the S&P 500 and the Nasdaq Composite weight their members by market value, Nvidia's scale gives its moves meaningful influence over index-level results.

Marvell Technology rose 5.8% after raising its 2028 revenue forecast on strong demand for data center chips. AMD gained 2.8% after CEO Lisa Su said the company plans to substantially increase chip supply in 2027 to meet AI demand. Constellation Energy jumped 12.3% after reaching a 3,590-megawatt power agreement with Google, a deal that connects the AI infrastructure buildout to the electricity sector. Taken, the session's movers spanned the AI supply chain, from chipmakers to power providers.

Earnings in Focus

Investors are now looking toward third-quarter earnings for further confirmation that the AI spending boom is translating into corporate growth. Analysts expect S&P 500 earnings to increase 30.6% from a year earlier during the quarter, according to LSEG, with technology earnings expected to rise 66.5%. Goldman Sachs estimates that more than half of the expected S&P 500 earnings growth is coming from companies benefiting from AI infrastructure investment. With that much of the projected growth concentrated in AI-linked companies, the upcoming reports will offer a direct read on how much of the spending boom is reaching corporate results.

Tokenized Stocks Bring the Rally On-Chain

The rally has also become increasingly accessible through crypto markets, as tokenized stock platforms bring some of the largest US equities and ETFs on-chain. Investors can gain tokenized exposure to the S&P 500 through products tied to the SPDR S&P 500 ETF Trust, better known as SPY. xStocks offers the ETF as SPYx, while Ondo Finance offers SPYon. Both products provide on-chain exposure to the underlying ETF rather than directly tokenizing the S&P 500 index itself.

The same model has expanded to technology-heavy Nasdaq exposure. xStocks offers QQQx and Ondo offers QQQon, both tied to the Invesco QQQ Trust, which tracks the Nasdaq 100. The Nasdaq 100 is separate from the broader Nasdaq Composite that reached a record on Tuesday, but it includes many of the large technology and AI companies driving the current market rally.

Ondo has expanded SPYon and QQQon across Ethereum, Solana, and BNB Chain, with minting and redemption, meaning the creation or redemption of tokens against the underlying ETF, available 24 hours a day, seven days a week, along with integrations that allow the tokens to be used as collateral in DeFi.