US stocks hit record, earnings and AI capex fuel rally

The S&P 500 posted its first record closing high in two months on Tuesday, driven by strong corporate earnings, a reset in AI shares, and moderating valuations. With over 75% of companies reporting, second-quarter earnings are on track to rise 31.1% year-over-year, the highest since 2021. However, rising Treasury yields pose a key risk to the market's momentum.