S&P 500 Breaks Records But Analysts Split on Whether Rally Can Broaden

#RecordHigh The S&P 500 broke its intraday record high on Tuesday, closing above 7,800 for the first time. This comes after the 10-year Treasury yield topped 5.3%, its highest since 2002. The SõP 500 slipped 0.3% in September, but its equal-weight version fell 4.8%. Large-cap tech gains masked the weakness underneath, according to Janus Henderson.

##The Broadening Case Analysts are split on whether the rally can spread beyond big tech. Some, like Stephanie Link, expect industrials, financials, and utilities to recover. Link cited Tuesday's 20-year nuclear power deal between Google and Constellation Energy, whose shares rose more than 12%. She expects better backlogs and orders for power and grid companies. Link also sees the consumer holding up, and said lower rates and oil prices would make her more constructive.

##The Selloff's Impact Gilman Hill Asset Management's Jenny Harrington said the selloff hit whole sectors regardless of each company's interest-rate exposure. Her equity income strategy targets a yield of 5% or more. Capital Wealth Planning's Kevin Simpson said broadening depends on energy prices. Lower oil could ease inflation and pressure on the Fed. Will More Fed Hikes Stall the Rally?

##The Broadening Conundrum Requisite Capital Management's Bryn Talkington said expectations of several more hikes would end any broadening. Earnings season starts in earnest next week, Talkington said, and she expects tech and energy to dominate it. She estimated Nvidia and Micron will supply a third of SõP 500 earnings growth. That concentration leaves the broadening case dependent on profit growth outside AI hardware.