US stocks hit new record highs on Tuesday as Nvidia surpassed Microsoft to become the most valuable public company. The S&P 500 closed up 0.3%, securing its 31st record close of the year. Nvidia's stock rose over 3.5%, pushing its market cap to $3.34 trillion, while Microsoft's market cap stood at $3.32 trillion. Tech stocks led the rally, with the Nasdaq Composite notching its 7th straight record close. Despite positive momentum, disappointing retail sales numbers for May raised concerns about consumer strain amid high interest rates and inflation. Fed officials signaled a potential easing of policy later this year, with one rate cut expected in 2024. However, investors remain optimistic, with over 60% still anticipating two rate cuts by year-end. The AI revolution continues to drive market enthusiasm, prompting Wall Street banks to raise their S&P targets.