Markets
The S&P 500 Finally Beat Its August Record, and Utilities Did the Heavy Lifting
The S&P 500 rose 0.58% to 7,818.93 on October 6, its first record close since August 13. The Nasdaq set a second straight record, but the day's best sector was utilities, up almost 3% as bond yields eased.
It took seven and a half weeks, but the S&P 500 is back at a record. The index gained 0.58% on Tuesday, October 6, to close at 7,818.93, above its previous record of 7,798.99 from August 13. It touched 7,844.52 during the session, also a record. The Nasdaq Composite added 0.45% to 27,599.79, its second record close in a row, after reaching 27,722.75 intraday. The Dow Jones Industrial Average rose 0.49% to 51,521.28 but remains about 5% below its August 5 record of 54,349.12.
What stands out is where the gains came from. The Utilities Select Sector SPDR (XLU) jumped 2.98%, by far the best of the major sectors and its biggest one-day gain since April 9, 2025. Consumer discretionary (XLY, +1.18%) and industrials (XLI, +0.87%) followed, helped by Amazon (+1.95%), Home Depot (+1.97%) and Caterpillar (+1.80%). Walmart gained 2.03% and Broadcom 3.67%. Technology rose about in line with the market (XLK +0.53%), while semiconductors (SMH, −0.22%) and healthcare (XLV, −0.17%) slipped. Salesforce fell 2.09%.
The utilities rally makes more sense next to the bond market. The 10-year Treasury yield, which on Monday closed at 5.31% — its highest since 2002 — eased to 5.27%. Utilities are often called 'bond proxies': they pay steady dividends and have predictable earnings, so they compete directly with bonds for income-focused investors. When yields fall, even slightly, those stocks tend to benefit most. A single day doesn't make a trend, but it's a reminder that, at these yield levels, small moves in bonds can shift money between sectors quickly.
Not everything participated. The small-cap Russell 2000 fell 0.59% to 2,830.30, a reminder that the record was driven by large companies rather than the whole market. Still, the mood is calm: the VIX volatility index closed at 15.01, its lowest since September 25. For traders, a record after a long gap is a different signal from a record in the middle of a streak. It shows that the August high, which had capped the index for weeks, has now been cleared. Whether it becomes support — a level the index can hold on a pullback — is the next test. Our guide to all-time highs explains why breakouts to new records often behave differently from other breakouts.