The S&P 500’s return to a record high

The S&P 500 index returned to an intraday record on Tuesday, surpassing its previous high of 2,872.87 points reached in January.

The S&P’s fresh record comes after second-quarter earnings season has basically wrapped up, while some easing trade tensions also supported the markets with China and the U.S. meeting to discuss trade after a tit-for-tat tariff exchange.

Commenting on the milestone, Chris Larkin, SVP, Trading Product, E*TRADE, said "Today is one for the record books. August is typically a quiet month but looks like not so much for the SPX. After being range-bound for some time, it finally took flight, suggesting traders are shrugging off geopolitical unrest and finally focusing on fundamentals."

He added, "On the other hand, with today’s SPX’s record combined with low VIX numbers, we have to ask if traders are a bit too bright-eyed, focused on the short-term momentum and not on the long-term risks like inflation and an escalating trade war."

When it comes to corporate results, expectations were high going into the second-quarter earnings season, and even those lofty expectations were surpassed.

S&P 500 companies experienced a 24.6% increase in earnings year-over-year, with the energy sector leading the charge. Energy companies’ earnings increased 123.1%, year-over-year, According to Thomson Reuters’ Aug. 20 earnings scorecard. Materials sector companies saw a 40% increase in earnings and financials a 27.4%.