Key facts
- The Nasdaq Composite closed at a record high on Tuesday.
- AI stocks, such as Micron Technology, fueled the Nasdaq's advance.
- The S&P 500 also approached a record high.
- Investors are anticipating a meeting between President Trump and Chinese President Xi Jinping.
- Falling oil prices and Meta's Muse agent are contributing to a brighter AI trade outlook.
The Nasdaq Composite reached a new record high on Tuesday, buoyed by the ongoing surge in artificial intelligence-related stocks. Micron Technology was among the companies that benefited from the AI rally. The S&P 500 also showed strength, moving closer to its own record level.
Market participants are now looking ahead to an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping. Hopes for a de-escalation in trade tensions between the two economic powers are contributing to a more optimistic outlook for AI trade. This positive sentiment is further supported by declining oil prices and the development of Meta's Muse agent.