US stocks closed higher with the S&P 500 index recording a record closing high ahead of Nvidia's quarterly report that will test investors' high valuation of artificial intelligence (AI) companies.
Shares of Nvidia, the world's most valuable company and a major AI provider, bounced between gains and losses before falling 0.1% ahead of the quarterly report after the market closed.
With Nvidia accounting for about 8% of the S&P 500, its financial results are expected to have a major impact on Americans who rely on index funds for retirement savings.
The S&P 500 average rose 0.24% to 6,481.40 points, the Dow Jones Industrial Average rose 0.32% to 45,565.23 points, while the technology-focused Nasdaq rose 0.21% to 21,590.14 points.
In other developments, investors are also paying attention to President Donald Trump's efforts to fire Federal Reserve (Fed) Governor Lisa Cook, which is expected to trigger a legal challenge.
If Trump's move is successful, he will have the opportunity to appoint a successor to the Fed board who is in line with his policies, thus threatening the central bank's independence.
In addition, New York Fed President John Williams said on CNBC that interest rates could be cut, but the decision on whether a cut will be made at the September meeting depends on upcoming economic data.
According to LSEG data, investors also now expect a 25 basis point interest rate cut in September, with most major brokerage firms also supporting that expectation.
Meanwhile, MongoDB shares jumped 38% after the software company raised its annual profit forecast.
JM Smucker shares fell 4.4% after the Jif peanut butter maker missed its first-quarter profit estimate.
Trading volume on the US exchange recorded $14.0 billion, compared to an average of $16.9 billion over the full 20 trading days.
