US equity indices advanced on Tuesday, supported by renewed stability in the technology sector and easing inflation concerns. The S&P 500 rose 0.5%, the Nasdaq 100 gained 1%, and the Dow added 100 points to close at a record high. AI-related stocks extended last week’s rebound as the market moved past brief jitters over the speculative AI trade, helped by robust guidance from chipmakers despite elevated spending by hyperscalers. Shares of AMD, Intel, Marvell, Applied Materials, and SanDisk climbed as much as 7%.
At the same time, oil prices held near their pre-war levels, reducing the risk that the Federal Reserve would be pushed into another rate-hike cycle. This more favorable macro backdrop for corporates underpinned traditional sectors with heavier weightings in the Dow, enabling the index to outperform its peers in June. Alphabet, which joined the Dow on Monday, has already gained more than 5%. The S&P 500 was on track for a 15% increase in the second quarter, its strongest quarterly performance in six years.
