Stocks Rose Again and Bond Yields Fell Amid Renewed Optimism In Tech. The S&P 500 Hit a New High.

Stocks climbed again on Tuesday, with tech-related stocks leading the gain as optimism returned to the AI-related trade.

The Nasdaq Composite increased by 0.45%, while the Dow Jones Industrial Average did so 0.49%. The S&P 500 overperformed, gaining 0.58% and hitting a new record high.

The session continued to steer Wall Street toward its most profitable year ever as an artificial intelligence-fueled dealmaking boom, blockbuster stock offerings, and volatile markets deliver a windfall for the financial industry.

Wall Street firms generated $45.9 billion in profits during the first half of 2026, according to a new report from the New York State Comptroller's office. That represents a 51.3% increase from the same period last year and already surpasses the $45.3 billion in profits that had been forecast for the entire year.

If that pace continues, annual profits could top $90 billion, smashing the record $65.1 billion earned in 2025 and putting the industry near its extraordinary post-financial-crisis performance in 2009 even after adjusting for inflation. Behind the surge is a potent combination of booming capital markets, record dealmaking and trading revenue generated by a year of sharp swings across global markets.

Oil prices edged up as tensions remain elevated in the Middle East. The Energy Information Administration hiked its forecast of oil prices for the fourth quarter of the year as flows remain tight.

In a new overview, the EIA said it estimates that oil flows in the region will remain constrained in the last quarter of the year. "We now forecast the Brent crude oil spot price will average $105 per barrel (b) in 4Q26, $14/b higher than in last month's" forecast, the document said.

It specified that attacks against Saudi Arabia's East-West pipeline in September "highlight the potential for continued volatility in physical oil flows and oil prices amid ongoing withdrawals of oil inventories globally." The country this week managed to resume partial flows.

The document went on to note that "additional upward pressure on crude oil prices stems from extreme tightness in diesel markets that raises demand for crude oil in order for refiners to meet diesel demand. We expect the Brent spot price will fall to an average of $84/b next year."

However, it claimed that flows are likely to start recovering and improve the outlook for the next year, adding that "regional shut-in production in September was the lowest since the onset of hostilities."

"Despite ongoing constraints, we assume that a combination of convoys through the Strait of Hormuz and workarounds to oil exports from the Middle East, including bypass routes and increased use of ship-to-ship transfers, will lead to production and exports from the region generally increasing through the forecast period," the EIA added.