Stocks climbed to record levels on Tuesday, even as a deeper-than-expected revision to labor market data fueled ongoing concerns over the health of the U.S. economy. Investors are also looking ahead towards two key inflation readings due out later this week for more insight on the potential of a coming recession.

The Dow Jones Industrial Average (DIA  ) rose nearly 200 points on Tuesday to settle at a new record of 45,711.34, benefitting from gains in UnitedHealth (UNH  ) shares. The S&P 500 Index (SPY  ) also closed up nearly 0.3% at 6,512.61, while the Nasdaq Composite reached a fresh intraday and closing highs, gaining about 0.4% to end at 21,879.48.

Capturing much of Wall Street's attention, the Bureau of Labor Statistics' annual revision to nonfarm payrolls data for the year prior to March 2025 showed a loss of 911,000 positions compared to initial estimates. The new preliminary total was at the high-end of economist expectations and marked the largest loss on record dating back to 2002.

JPMorgan Chase (JPM  ) CEO Jamie Dimon told CNBC following the report that he believes "the economy is weakening," but hesitates to call it a recession. The leader of the largest bank by many metrics added that waning consumer sentiment coupled with still-strong corporate profits have created a "wait and see" environment when it comes to gauging future economic growth.

The fresh labor report did reaffirm calls for the Federal Reserve to issue its first interest rate cut since December at its upcoming meeting next week. More than 90% of market participants expect the central bank will reduce its benchmark overnight borrowing rate by 25 basis points, according to CME Group's FedWatch tool, while some traders see a path for policymakers to issue a half-point rate cut.

Two key inflation reports for August now lay ahead of the Fed's September 16-17 meeting: the producer price index (PPI) reading due out Wednesday morning, and the consumer price index (CPI) report set to release Thursday morning. The two readings will offer Wall Street more insight on whether rising prices could curb the need for multiple rate cuts this year.

Elsewhere on the economic front, the National Federation of Independent Business (NFIB) reported Tuesday that its small-business optimism index ticked higher to 100.8 in August's from July's reading of 100.3. The firm's uncertainty index also declined by 4 points to 93, signaling that small business owners are growing more confident in their outlooks.

"Optimism increased slightly in August with more owners reporting stronger sales expectations and improved earnings, said Bill Dunkelberg, chief economist at NFIB, in a statement. "While owners have cited an improvement in overall business health, labor quality remained the top issue on Main Street."

In the news, UnitedHealth shares rose on Tuesday after the health insurance giant said in a regulatory filing that it expects about 78% of its members to be enrolled in highly-rated Medicare insurance plans next year, based on a preliminary review. The estimates reflect membership in plans that have four stars or higher, according to the filing.

Apple (AAPL  ) held its "Awe dropping" launch event on Tuesday, unveiling updates to its iPhone, Apple Watch and AirPod products before their official release on Sept. 19. The tech giant announced four new models to its flagship iPhone, including its newest model called the iPhone Air -- boasting a thinner and lighter design based on a new titanium body and providing an "amazing all-day battery life," starting at $999.

"Our intention was to make an iPhone that feels like a piece of the future, powerful, yet so thin and light it seems to disappear in your hands," the company said in a presentation.

The company also revealed the launch data for its new operating system iOS 26, coming Monday, Sept. 15. The company calls the new visual design "liquid glass," replacing static buttons and menus throughout the iPhone operating system with new animations and transparent designs.

For Wednesday, market participants will turn their attention toward August's PPI reading, alongside earnings reports from companies including Oracle (ORCL  ) and Chewy (CHWY  ).