Stock Market Today: S&P 500, Nasdaq clinch fresh records on Apple rally; Fed eyed By

-- The Platform foreign exchangeS&P 500 and Nasdaq climbed to a record close for the second-straight day Tuesday, underpinned by falling Treasury yields fell and a surge in Apple to all-time highs, though there was an element of caution ahead of Federal Reserve interest rate decision.

At 16:00 ET (20:00 GMT), the gained 0.3% and the was up 0.9% to close at fresh record highs. But the fell 120 points, or 0.3%.

Apple hits record high after AI strategy unveiling

Apple (NASDAQ:) rose 7%, hitting a record high after its AI strategy, which was unveiled a day earlier at its annual developer conference was cheered by Wall Street.

Apple unveiled a partnership with OpenAI to integrate ChatGPT chatbot into its products, as the tech giant looks to enhance its artificial intelligence capabilities that is expected the iPhone upgrade cycle. 

As the AI functionality will only be backward compatible to iPhone 15 Pro…it "could lead to a much-needed iPhone upgrade cycle,”  D.A. Davidson said in a note.

Treasury yields fall as 10YR Treasury auction signals stronger demand

The yield on the fell 7.4 basis points to 4.397% after a $38 billion auction of 10-year notes were awarded at lower than expected yields, pointing to signs of stronger demand. 

Yields on 2-year, 5-year and 30-year Treasuries were also under pressure following the strong-than-expected auction results. 

Fed starts meeting as rate decision looms

The kicked off its two-day policy-setting meeting Tuesday, and the central bank is widely expected to leave interest rates unchanged in a range of 5.25% to 5.5% on Wednesday.

The monetary policy statement will also include the Fed's updated "dot plots," or the outlook on interest rates, inflation, and unemployment. Remarks from Fed Chair , meanwhile, is also expected to garner the bulk of investor attention.   

As well as the Fed decision, the May reading of its U.S. , a highly-anticipated gauge of inflation in the world's largest economy, is also set to be released.

Further signs of inflation easing could cement expectations for rate cuts, especially given signs of economic weakness, but a bad inflation miss could spook investors and bring back recession fears that have laid dormant for months.

General Motors rises on stock repurchases plan, Eli Lilly on Alzheimer’s drug progress

General Motors (NYSE:) stock rose 1.4% after the auto giant’s board authorized a fresh $6 billion stock repurchase plan. 

Eli Lilly (NYSE:) stock traded above the flatline after its Alzheimer's drug donanemab received unanimous backing from an FDA panel.

(Peter Nurse contributed to this story)

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