Market Pulse: S&P 500 and Nasdaq Edge Higher Amid AI Optimism and Federal Reserve Focus

The S&P 500 and Nasdaq moved higher on Tuesday, with the former reaching a new intraday milestone as investors anticipated insights from Federal Reserve officials regarding policy direction.

Buoyed by interest in artificial intelligence and speculation of eased monetary policy, the equities rally continued amid fears of overvaluation and minimal data releases due to a week-long government shutdown. Jamie Cox of Harris Financial Group remains confident in the market's trajectory.

Ahead of the Federal Reserve's meeting, traders expect a 25 basis point cut in interest rates, following reports hinting at a softer job market. Despite the importance of key official data like nonfarm payrolls, these reports may guide the Fed in the absence of government data.

(With inputs from agencies.)