04:45 PM EDT, 05/21/2024 (MT Newswires) -- The S&P 500 and the Nasdaq Composite closed at their all-time high levels Tuesday, as markets assessed remarks by Federal Reserve Governor Christopher Waller.

The S&P 500 rose 0.3% to 5,321.4, while the Nasdaq gained 0.2% to 16,832.6, extending its record closing run from Monday. The Dow Jones Industrial Average advanced 0.2% to 39,873. Among sectors, utilities led the gainers, while energy saw the steepest decline.

Waller said several more months of "good inflation" data are likely required to support a case for a reduction in the central bank's benchmark lending rate. Inflation data for April indicated that progress toward the Federal Open Market Committee's 2% target has likely resumed, he said.

On Monday, Fed Vice Chair Philip Jefferson said it's likely "too early" to say if the recent slowdown in the disinflationary process will last for long. Separately, Fed Vice Chair for Supervision Michael Barr said the current restrictive monetary policy likely needs additional time to help the FOMC achieve its inflation target.

In a bid to combat inflation, the FOMC lifted interest rates by 525 basis points from March 2022 through July 2023. It has kept rates unchanged since then, with its latest pause coming earlier this month.

The US 10-year yield fell 2.3 basis points to 4.41% Tuesday, while the two-year rate was little changed at 4.84%.

In economic news, non-manufacturing activity in the US Mid-Atlantic region moderated at the firm level in May as orders fell back into negative territory, the Philadelphia Fed said.

West Texas Intermediate crude oil dropped 0.9% to $79.06 per barrel.

In company news, First Solar ( FSLR ) shares jumped 8%, the top gainer on the S&P 500, as UBS and Piper Sandler upgraded their respective price targets on the stock.

Keysight Technologies ( KEYS ) shares slumped 8.4%, the second-steepest decline on the S&P 500. The company late Monday issued a downbeat financial outlook for its fiscal third quarter.

Gold and silver declined 0.5% each to $2,425.70 per troy ounce and $32.26 per ounce, respectively.