The S&P 500 and Nasdaq hit record highs boosted by Delta Air Lines forecast and Nvidia’s milestone. Initial jobless claims fell below consensus at 227,000. Nine of 11 S&P sectors advanced. Despite Nvidia’s record, Netflix and Microsoft faltered. Tesla rose 4.7% ahead of its annual shareholder meeting announcement.

Megacap stocks were mixed with Tesla leading gains. Wall Street rebounded from April’s sell-off after last week’s strong labor market report. Investors are gaining clarity on tariffs and awaiting second-quarter earnings reports. Trump announced new tariffs on copper and threats to Brazil’s exports, affecting global trade negotiations.

Most Federal Reserve policymakers anticipate rate cuts this year due to inflation from tariffs. Investors see a 64% chance of a September rate cut. Fed officials are cautious about rate cuts due to uncertainty over the impact of rising import tariffs on inflation. WK Kellogg surged while Conagra Brands sank on tariff-related costs.

Advancing issues outnumbered decliners on NYSE and Nasdaq. S&P 500 and Nasdaq recorded new highs and lows. U.S. exchanges saw 18.16 billion shares traded. Market analysts are optimistic about the market’s record levels amid ongoing trade negotiations and clarity on tariffs.

Read more at Yahoo Finance: Indexes rise, boosted by Nvidia record valuation, strong Delta forecast