FX.co ★ Dow Extends Record High

U.S. stocks experienced modest gains on Tuesday, buoyed by ongoing expectations of multiple interest rate cuts from the Federal Reserve, which continue to enhance the earnings growth forecast. The Dow Jones Industrial Average increased by over 250 points, reaching a new record high, while the Nasdaq 100 climbed 0.6%. The S&P 500 rose by 0.3%, nearing its all-time peak. Chip manufacturers saw a significant uptick, rebounding after underperforming in the previous session, as investors evaluated the potential risks of overvaluation in the sector. Companies such as Micron, Texas Instruments, Analog Devices, and NXP rose between 6% and 8%. The healthcare sector also recovered, with Eli Lilly and UnitedHealth Group increasing by 1% and 2%, respectively. Meanwhile, markets remained largely unaffected by geopolitical tensions following the U.S. capture of Venezuelan President Nicolás Maduro. Chevron, the only U.S. firm operating in Venezuela, saw a 3% decline, reversing gains from the prior day. Gulf Coast refiners with infrastructure suited for heavy crude, including Phillips 66, Valero, and Marathon Petroleum, experienced losses exceeding 1%.