The Nasdaq Composite (^IXIC), which has a heavy focus on technology, reached a new high on Tuesday by surpassing 17, 000 for the first time. This milestone was achieved as Nvidia (NVDA), a prominent player in artificial intelligence (AI), continued to perform exceptionally well after its earnings report, with its stock reaching a record high of $1, 140 per share. On the other hand, the S&P 500 (^GSPC) managed to finish the day slightly above the flatline, while the Dow Jones Industrial Average (^DJI) experienced a decline of about 0. 6%, resulting in a loss of over 200 points. After a volatile week, the market benchmarks are now regrouping as traders return from the Memorial Day break. The stock market has been influenced by two conflicting factors: diminishing optimism for rate cuts, and great expectations for AI's growth. Investors have shifted their attention to inflation concerns and are eagerly awaiting the release of the Federal Reserve's preferred PCE gauge on Friday. Federal Reserve officials have repeatedly emphasized that significant evidence of a cooling in inflation is necessary to prompt any policy changes.

Neel Kashkari is the latest official to echo these sentiments. Moving on to other notable stock movements, GameStop (GME) experienced a remarkable surge of nearly 25% on Tuesday. Recently, the games retailer revealed that it had raised almost $1 billion from a share sale during the meme rally that took place in May. In addition, Apple (AAPL) witnessed an increase in its stock price following data indicating a more than 50% rise in iPhone sales in China during April, attributed to retail partners reducing prices.