Key facts
- The Nasdaq Composite hit an intraday record high on Tuesday, surpassing its previous peak from June 1.
- Tech stocks regained prominence, driven by sustained AI demand and resilient corporate earnings.
- Chipmaker AMD's market valuation topped $1 trillion on Monday, boosting semiconductor stocks.
- The Philadelphia SE Semiconductor index reached a more than one-month high.
- Oil prices fell to two-week lows amid signs of improving supply in the Middle East.
- Iran signaled potential reopening of the Strait of Hormuz, easing supply concerns.
The tech-heavy Nasdaq Composite hit an intraday record high on Tuesday, surpassing its previous peak from June 1. This milestone comes after the index briefly fell more than 10% from its intraday high in late July due to concerns that AI spending might not materialize as quickly as expected. Technology stocks, which have been the primary drivers of US market gains this year, regained prominence. Sustained demand for artificial intelligence and resilient corporate earnings provided support. Chipmaker AMD's market valuation surpassed $1 trillion on Monday, contributing to a surge in semiconductor stocks and pushing the Philadelphia SE Semiconductor index to a more than one-month high. Market sentiment was also lifted by falling oil prices, which reached a two-week low. Easing concerns over increased oil supplies and Iran's signal about potentially reopening the Strait of Hormuz contributed to the decline in crude prices. The benchmark S&P 500 and the Dow Jones Industrial Average had already achieved record highs earlier in August, making the Nasdaq the last major index to reach its recovery peak. At 09:32 a.m. ET, the Dow Jones Industrial Average was up 0.30%, the S&P 500 gained 0.19%, and the Nasdaq Composite added 0.33%. Advancing issues outnumbered decliners on both the NYSE and Nasdaq. MSCI's gauge of stocks across the globe rose 0.08%, and the pan-European STOXX 600 index rose 0.2%. Investors are pricing in another round of rate hikes from major central banks, which could limit the decline in debt yields. US 10-year Treasury yields were down 0.17 basis points on the day at 4.961 per cent. The dollar gained 0.17 per cent on the euro to $1.1441 and was down 0.03 per cent at 157.33 Japanese yen. The Bank of Japan raised rates last week to a 31-year high but two dissenting votes and a lack of explicit hawkish guidance disappointed investors, which has left the yen vulnerable and kept traders on alert for signs of official intervention. The Federal Reserve, by contrast, raised rates last week and warned its fight against inflation was not over, keeping the door open to further tightening.