US stocks climbed to fresh record highs on Tuesday as continued momentum in the AI-driven economy outweighed geopolitical concerns surrounding the standoff between the US and Iran. The S&P 500, Nasdaq 100, and Dow reversed earlier losses to trade marginally in positive territory.
Large-cap semiconductor manufacturers and AI infrastructure names led the advance, extending the rally that has powered equity indices throughout the year. Broadcom rose 5% ahead of its earnings release tomorrow, while Lam Research, Qualcomm, and ON Semiconductor each gained more than 5%, after increased wafer capacity at SK Hynix lifted sector-wide production forecasts.
In corporate news, Hewlett Packard Enterprise (HPE) surged 30% after issuing AI-driven guidance upgrades, and Marvell Technology rallied 20% following comments from Nvidia CEO Jensen Huang suggesting it could become the next trillion‑dollar company.
Energy prices remained elevated as reports indicated continued strikes between Israel and Lebanon, despite US President Trump’s signal of a potential ceasefire. Iran has maintained that such a ceasefire is a prerequisite for resuming peace talks and reopening the Strait of Hormuz.
