04:34 PM EDT, 06/18/2024 (MT Newswires) -- The S&P 500 and the Nasdaq Composite closed at record highs Tuesday as investors analyzed the latest economic data and remarks by Federal Reserve officials.

The S&P 500 rose 0.3% to 5,487, while the technology-heavy Nasdaq edged up to 17,862.2. The Dow Jones Industrial Average advanced 0.2% to 38,834.9. Financials and technology led the gainers among sectors. Communication services posted the steepest decline.

US stock markets will be closed Wednesday for Juneteenth.

In economic news, retail sales in the US edged up 0.1% last month following April's downwardly revised 0.2% decline. Analysts expected a 0.3% rise, according to a survey compiled by Bloomberg.

"The retail sales report, along with softening labor market indicators, adds to the evidence of weakening demand that should continue to put downward pressure on consumer price inflation and keep the door open for a September Fed rate cut," BMO said in a note.

US industrial production rose more than expected in May as manufacturing output returned to growth after two months of declines, Fed data showed.

The US 10-year yield declined 6.4 basis points to 4.22%, and the two-year rate dropped 5.3 basis points to 4.71%.

While recent inflation data has been "encouraging," the process of lowering inflation may take longer than expected, Boston Fed President Susan Collins said.

"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability," Collins said. "However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target."

New York Fed President John Williams told Fox Business News that the central bank's Federal Open Market Committee will make policy decisions based on the incoming economic and inflation data and not politics as the presidential election approaches in November.

West Texas Intermediate crude oil increased 1.4% to $81.49 per barrel Tuesday.

In company news, Nvidia ( NVDA ) shares jumped 3.5%, among the top gainers on the Nasdaq, with its market capitalization reaching about $3.335 trillion, overtaking Microsoft ( MSFT ) and Apple ( AAPL ) as the world's most valuable company.

Teradyne ( TER ) was among the best performers on the S&P 500, up 4.8%, as UBS raised its price target on the stock to $170 from $130 while maintaining the buy rating.

Lennar ( LEN ) shares fell 5%, the second steepest decline on the S&P. On Monday, the homebuilder's guidance for fiscal Q3 home deliveries fell short of consensus at the midpoint, even though it recorded better-than-expected results in the previous quarter.

Gold rose 0.7% to $2,344.50 per troy ounce, while silver gained 0.8% to $29.63 per ounce.