Stock Market Today: S&P 500 Hits Record High as Investors Await Powell's Testimony

US stocks continue their record-setting climb as investors eagerly anticipate Federal Reserve chair Jerome Powell's testimony to Congress. The S&P 500 and Nasdaq Composite have reached new highs, but concerns about a potential summer pullback and high expectations for the upcoming earnings season are starting to emerge.

Investors are also questioning the recent rally in AI-linked stocks. Despite these concerns, US stocks are holding near record levels as Powell's remarks to the Senate buoy rate-cut hopes.

Powell hinted at the possibility of lowering interest rates due to cooling inflation and the job market. Investors are anxiously awaiting Powell's appearance in the House, as well as the crucial consumer inflation report scheduled for Thursday.

Meanwhile, the S&P 500's strong performance this year, driven by a handful of AI-related stocks, has led to an 'earnings recession' for the remaining stocks in the index. However, analysts expect this earnings recession to end in the upcoming second quarter.

Despite the S&P 500 reaching an all-time high, two Dow dividend stocks, Nike and McDonald's, are trading near their 52-week lows and are considered attractive long-term investments due to their solid dividends and compelling valuations.