This is CNBC's markets live blog that was updated throughout the day.
Tech continued its outperformance on the first trading day of September, lifting the broader market higher. Zoom Video surged as much as 47% after reporting another blowout quarter. Apple, Netflix and Amazon were all up at least 1%. The Dow and the S&P 500 were coming off their best August performance in more than 30 years. Here's what happened:
The market kicked off a historically tough month on the right foot with the S&P 500 climbing 0.75% to hit an all-time high. It marks the best first trading day of September for the broad equity benchmark since 2010, according to Bespoke. — Yun Li
The market started off September on a high note with the S&P 500 and the Nasdaq Composite both hitting new records. The Dow ended Tuesday's session up 210 points. Tech was the best performer by far as heavyweights Apple, Amazon, Netflix and Alphabet all gained at least 1.4%. Zoom Video soared 40.7% on the back of stellar quarterly results. Dow-component Walmart jumped more than 6% to an all-time high.— Yun Li
The major averages traded at their highs of the day heading into the final hour of trading as tech and Walmart powered the gains. The Dow was up 150 points, or 0.5%. The S&P 500 gained 0.6% to hit a new intraday record of 3,521.26 and the Nasdaq outperformed, advancing 1.2%. —Fred Imbert
Bank of America raised its price target on Walmart to a Street high of $175 from $150 and said the "omni-channel evolution will continue" as the big box retailer announced Tuesday the launch of its "Walmart+" membership program. "WMT's recent merging of its grocery & general merchandise apps, integration of in-store & online merchandising teams, discontinuation of Jet.com, expansion of pick-up and delivery time slots, & increasing availability of general merchandise items for same-day pickup & delivery set WMT up for the launch of the Walmart+ membership program," analyst Robert Ohmes said. The firm kept its buy rating and said it remains "bullish on WMT's omni-channel strategy & dominant store footprint that supports localized fulfillment advantages." Shares are up 6% in midday trading. - Michael Bloom
Federal Reserve Governor Lael Brainard lauded the central bank's new approach to inflation and advocated keeping policy fixed while the economy recovers from the coronavirus pandemic. In a speech to Brookings Institution panel, Brainard called on Fed policy that should "pivot from stabilization to accommodation." The Fed is now following an approach called "average inflation targeting" that will allow inflation to run above the 2% objective for a period of time to compensate for times when it was below the goal. She advocated against the Fed's former policy of raising rates preemptively during times of low unemployment to guard against inflation. "The longstanding presumption that accommodation should be reduced preemptively when the unemployment rate nears the neutral rate in anticipation of high inflation that is unlikely to materialize risks an unwarranted loss of opportunity for many Americans," Brainard said in prepared remarks. Economic "risks are titled to the downside," she added, while calling for more fiscal help from Congress. — Jeff Cox
Zoom Video — Shares of the video conferencing company rallied more than 30% on the back of better-than-expected results for the previous quarter. On a year-over-year basis, the company's revenue more than quadrupled. Zoom also raised its earnings guidance for fiscal 2021.
Penn National Gaming — Penn shares soared more than 14% after one analyst called its investment in David Portnoy's Barstool Sports a brilliant business alliance.
Apple — Shares of Apple rose 2.5% after Bloomberg News reported the tech giant is planning to launch four new iPhone models with 5G cellular technology in October.
Check out more midday movers here. — Yun Li
Tesla said Tuesday that it will sell up to $5 billion in new stock in a move that Goldman Sachs called "somewhat of a surprise." The firm noted that the company previously tapped the public market in February, and said that prior stock offerings have typically been announced around 10-Q and 10-K filings. That said, Goldman analyst Mark Delaney said the move wasn't a "shock."
Delaney has a neutral rating on Tesla, and a 12-month price target of $295. Shares last traded about 2.2% lower at $487.40. - Pippa Stevens, Michael Bloom
The major averages kicked off the month with a solid start, rising broadly and building on their strong performances from August. The Dow climbed 100 points, or 0.4% The S&P 500 gained 0.3% and the Nasdaq outperformed by advancing 0.9%. —Fred Imbert
Shares of Walmart jumped 5.7% to its session high on Tuesday. The strong gains came after the supermarket chain unveiled a new membership program that features unlimited free delivery and discount for gasoline. The new Walmart+ will be launched on Sept. 15.— Yun Li
Shares of Zoom Video built on their gains Tuesday, trading higher by 44.5% on the back of strong quarterly results. The video-conferencing company reported an adjusted profit of 92 cents per share on revenue of $663.5 million. Analysts polled by Refinitiv expected earnings per share of 45 cents on revenue of $500.5 million. On an annualized basis, the company's revenue grew by 355% in the previous quarter. Zoom also increased its earnings guidance for fiscal 2021. —Fred Imbert
U.S. manufacturing activity continued to rebound in August from the pandemic lows. The Institute for Supply Management (ISM) said Tuesday its manufacturing PMI (purchasing manager index) jumped for a third straight month to a reading of 56.0 last month, the highest level since January 2019. The gauge was at 54.2 in July. Any reading above 50 indicates expansion in manufacturing.— Yun Li
White House chief of staff Mark Meadows joined CNBC on Tuesday to discuss progress with top Democrats on another Covid-19 relief bill. Though he acknowledged that the two sides remain far apart on a total dollar amount, Meadows said that he expects Senate Republicans to next week float a more modest stimulus bill than what House Democrats have wanted.
He added that President Donald Trump is considering executive action to prevent U.S. airline companies from furloughing or laying off workers. — Thomas Franck
Pro Subscribers can read more here.- Michael Bloom
Shares of Eastman Kodak jumped 40% on Tuesday after D.E. Shaw disclosed a 5.2% passive stake in the company. However, the hedge fund is a quantitative trading firm meaning a position doesn't necessarily imply a long-term bet on a particular company.
Kodak has been on a roller-coaster ride after the government announced and then sidelined a planned $765 million loan for the company to pivot into drug production amid investigations into the circumstances surrounding the loan and its announcement. - Pippa Stevens
Shares of Walmart gained 2% in morning trading on Tuesday after the big-box retailer said it will launch a membership program on Sept. 15 to build on the strength of its grocery business and customers' desire for more convenient ways to shop. The new service, called Walmart+, will feature unlimited free delivery, discounts of as much as 5 cents a gallon for fuel and access to a Scan & Go app that allows shoppers to skip the checkout line. It will cost $98 a year, or $12.95 a month. — Yun Li
Major U.S. equity benchmarks were mixed at Tuesday's open. The Dow Jones Industrial Average dipped about 130 points, while strong gains in Big Tech pushed the Nasdaq Composite into positive territory. The S&P 500 was trading near the flat line at the open. Apple gained more than 2% following its stock split on Monday. The S&P 500 and the Dow just wrapped up their best August since the 1980s. — Yun Li
Shares of Zoom Video went on a tear on Tuesday morning, at one point rising more than 40% in premarket trading after the company beat expectations for its second quarter. Many Wall Street analysts hiked their price targets significantly for the stock, though some kept neutral or underweight ratings on the stock citing worries about valuation. — Jesse Pound
An SEC filing showed Tesla will sell up to $5 billion of its own stock as the company's value continues to skyrocket. The additional shares will be sold "from time to time" and "at-the-market" prices, according to the filing. Tesla shares retreated from their premarket high, but were still higher by 3%. Tesla shares have been on fire this year. Through Monday's close, the electric car maker has gained nearly 500% in 2020. —Fred Imbert, Pippa Stevens
Apple shares rose 2% in the premarket after a slew of analysts hiked their price targets on the tech giant following the company's 4-for-1 stock split.
Bank of America and JPMorgan raised their 12-month targets on Apple to $140 per share and $150 per share, respectively. Canaccord Genuity increased its target to $145 per share. These price targets reflect the split, which took effect on Monday.
"AAPL stock continues on an unprecedented strong run of outperformance vs. the broader market," said Bank of America's Wamsi Mohan in a note. But "momentum can cut both ways especially given risk to Sep/Dec qtr estimates (particularly on high end iPhones) but also recognize that in the short term momentum can trump valuation."
JPMorgan's Samik Chatterjee said that, while Apple's valuation is elevated, "potential upside revenue/earnings drivers as well as upcoming catalysts will make it difficult for investors to step away from the shares."
T. Michael Walkley thinks that, "despite challenging global economic conditions due to COVID-19, Apple is demonstrating the strength of its products and ecosystem."
Apple also got a boost after Bloomberg News reported the company is preparing to produce at least 75 million 5G iPhones for later this year. The report also said Apple is getting ready to launch a new iPad Air and two new watches, along with other products. —Fred Imbert