S&P 500 Sets Record as AI Megacaps Drive Rally — SkimNews

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- S&P 500 hit an intraday record of 7,844.52 on Tuesday, surpassing its August 13 peak of 7,830 and closing above 7,800 for the first time.
- 10-year Treasury yield crossed 5.3% on Monday — the prior session — reaching highs not seen since 2002, per a corrected version of the story.
- Oil swung from above $100/barrel in early March on Iran/Strait of Hormuz disruptions to below $70, then slingshot back above $100 in early September.
- Magnificent 7 stocks (Nvidia, Alphabet, Amazon, Apple, Meta, Microsoft, Tesla) account for over 34% of the S&P 500's market cap, making the rally's leadership unusually narrow.
- Amazon guided to roughly $200 billion in capital expenditures across its businesses in 2026, citing AI, chips, and robotics opportunities.
- SpaceX completed a $75 billion IPO in June — the largest ever — underscoring investor appetite for growth bets despite macro headwinds.
- Federal Reserve minutes from its September meeting are due Wednesday, with Potomac's Shawn Snyder warning weakening market breadth could persist absent clear progress on inflation.
Why it matters: With seven stocks representing more than a third of the index's market cap and 10-year yields at 5.3% — levels unseen since 2002 — Wednesday's Fed minutes could expose the rally's narrow foundations if they signal no near-term pivot on inflation.
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