The S&P 500 and Nasdaq indexes hit new record highs, boosted by technology and artificial intelligence stocks.
Technology stocks lead the rally again. Technology stocks continued to lead gains in US markets during Tuesday’s trading, with the momentum related to artificial intelligence continuing and pushing the main indices to new record levels.
The S&P 500 rose by about 0.6%, while the Nasdaq jumped by 1.2%, both hitting new historic highs, while the Dow Jones lagged behind the rally, falling by 118 points, as liquidity shifted more clearly toward the giant technology stocks with huge market capitalizations.
Micron, the memory chip manufacturer, was among the biggest gainers during the session, with its shares surging nearly 19%, pushing its market capitalization above $1 trillion for the first time in its history. This sharp rise reflects the optimism surrounding the semiconductor sector, driven by increasing demand for infrastructure related to artificial intelligence and data centers. Investors now view chip companies as among the biggest beneficiaries of the current technological revolution.
In the same vein, Apple shares continued their strong gains, maintaining a market capitalization exceeding $4.5 trillion, after the stock reached a new record high of $311 during intraday trading. Apple’s robust performance reflects continued investor confidence in major technology companies, despite growing debate about high valuation levels and the long-term sustainability of these gains.
In addition to the technological momentum, markets received further support from geopolitical developments after US President Donald Trump stated that talks with Iran were “going very well,” boosting hopes that a new escalation in the Middle East could be avoided. Despite the US carrying out what it described as defensive strikes in southern Iran, officials stressed the importance of restraint and maintaining the ceasefire, which helped to calm investor fears of a sharp rise in oil prices.
Geopolitical developments are of particular importance to financial markets due to their direct link to energy prices and inflation. Stable oil prices reduce inflationary pressures, potentially giving central banks more room to avoid maintaining high interest rates for extended periods. This scenario is especially positive for growth stocks and the technology sector, which typically benefit from a more flexible monetary environment, particularly given the continued investment enthusiasm surrounding artificial intelligence.
The recent rally was fueled by a combination of optimism surrounding artificial intelligence, strong corporate earnings, and investors’ quick return to buying on any price dips. Following the record-breaking session, US stock futures moved relatively flat in early Wednesday trading, suggesting the markets may be entering a period of anticipation and reassessment.
