Key facts
- The Nasdaq Composite reached an intraday record high on Tuesday, surpassing its previous peak from June 1.
- Technology stocks recovered lost ground, driven by sustained AI demand and resilient corporate earnings.
- Falling oil prices eased market concerns, with Iran signaling potential reopening of the Strait of Hormuz.
- 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.
The Nasdaq Composite reached an intraday record high on Tuesday, marking a significant recovery for the tech-heavy index. 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.