Stock market today: S&P 500 closes at fresh record high as Nvidia becomes world's biggest company

• Nvidia is now the world's most valued company, overtaking Microsoft on Tuesday.
• Treasury yields fell as retail sales came in weaker than expected.

The S&P 500 hit another fresh record on Tuesday, as a semiconductor rally crowned Nvidia the world's most valued company.

Shares in the AI chipmaker climbed as much as 4%, sending Nvidia's market capitalization to $3.338 trillion to help it claim the top spot from Microsoft.

Qualcomm, Taiwan Semiconductor, and Micron Technology all rose at least 3%.

Meanwhile, Treasury yields sank six basis points as markets were given more reason to expect interest rate cuts this year. May's retail sales data came in below expectations, indicating consumers are pulling back spending.

"Consumer spending is cooling in a fairly orderly fashion. So far, the economy could pull off a soft landing, especially if the Fed is quick to adjust policy as conditions change," LPL Financial chief economist Jeffrey Roach said.

May's report also came with downward revisions to previous months, which were a source of bigger concern for analysts. If that's paired with more softness in labor data, the Federal Reserve may be forced to move up the timing of its rate cutting cycle, LPL's chief global strategist Quicy Krosby wrote separately.

For now, Fed officials continue to signal just one interest rate cut in December, but futures markets are betting on the cycle to start in September, instead.

On Tuesday, industrial production data rose 9%, though much of this was led by higher output from utilities.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:

• S&P 500: 5,487.03, up 0.25%
• Dow Jones Industrial Average: 38,834.86, up %0.15 (+56.76 points)
• Nasdaq composite: 17,862.23, up 0.03%

Here's what else happened today:

• Russia's top lender is building out in China as fresh US sanctions take aim at it.
• The Fed could tip the US into recession if it keeps delaying interest rate cuts, economist Mohamed El-Erian said.
• Opaque companies are helping Russia's war economy source vital Western tech, think tank says.
• Three weak spots in labor that could trigger steeper Fed cuts, according to Goldman Sachs.
• Microsoft could climb 24% to $550 thanks to AI monetization, Wedbush Securities says.
• Treasury secretaries Janet Yellen and Larry Summers have blasted Trump's plan to replace the income tax with tariffs.
• Here's what needs to happen for stocks to avoid a 23% correction, according to JPMorgan's Kolanovic.

In commodities, bonds, and crypto:

• Oil futures rose. West Texas Intermediate crude oil rose up 1.78% to $81.76 a barrel. Brent crude, the international benchmark, climbed 1.22% to $85.26 a barrel.
• Gold increased 0.57% to $2,329 per ounce.
• The 10-year Treasury yield dropped six basis points to 4.217%.
• Bitcoin slid 0.68% to $64,567.