US stocks rose on Tuesday with the S&P 500 and Nasdaq closing at record highs, supported by gains in Nvidia and GE Vernova.
GE Vernova shares surged 14.6% to an all-time high after the power equipment maker raised its revenue and free cash flow forecasts, beating Wall Street's expectations for second-quarter profit.
Tesla shares rose 0.14% ahead of its quarterly report. Investors focused on the automaker's analyst conference with expectations of lower revenue due to fierce competition, a lack of new car models and sentiment towards CEO Elon Musk.
The S&P 500 index rose 0.78% to 6,358.91 points, the Dow Jones rose 1.14% to 45,010.29 points, while the technology-focused Nasdaq rose 0.61% to 21,020.02 points.
Analysts expect second-quarter earnings of S&P 500 companies to rise 7.5%, driven by major technology companies such as Microsoft and Nvidia continuing to lead the artificial intelligence (AI) sector.
In other developments, the surge was also supported by optimism about a US-European Union (EU) trade deal that is expected to resemble a previous agreement between the US and Japan during the era of President Donald Trump.
According to two diplomats, the White House's agreement with the EU will include a 15% tariff on EU imports to the US. This rate is also likely to apply to cars, mirroring the agreement reached by the US-Japan.
Trading volume on US exchanges recorded $19.1 billion compared to an average of $17.7 billion over the full 20 trading days.
