Nasdaq 100 Hits Record High: Tech Stocks Soar Amid Global Economic Recovery and Geopolitical Easing
The tech-heavy Nasdaq 100 index hit a record high on Tuesday, driven by a rally in chip stocks. The index rose 1.5% to 22,190, its first record closing high since February 19. The broader S&P 500 also advanced 1.1%, finishing the day less than 1% away from a record. The Dow Jones Industrial Average remains about 4% off its all-time high.
Investors were in risk-on mode after Israel and Iran agreed to a ceasefire on Monday night. The status of the truce was briefly in question on Tuesday morning when President Trump accused both sides of violating the agreement. However, investors were encouraged throughout the day by signs that the peace was holding, including Israel's decision to lift most wartime restrictions and fully reopen major airports.
Tech stocks led the rally on Tuesday, with nearly all of the Magnificent Seven stocks advancing. Microsoft gained nearly 1% to set a new all-time high, while AI chip giant Nvidia added 2.6% to close at its highest price since January. Amazon and Meta each added about 2%, and Alphabet tacked on 1%. Tesla and Apple were the laggards of the group, declining 2.4% and 0.6%, respectively.
Chip stocks soared, led by Advanced Micro Devices and Intel, which each climbed more than 6%. Broadcom notched a record high after jumping 4%. The PHLX Semiconductor Index advanced 3.8%. The rally in tech stocks was driven by optimism around the global economic recovery and the potential for increased demand for technology products and services. Additionally, the recent agreement between Israel and Iran has eased some concerns about geopolitical tensions, allowing investors to focus on the positive momentum in the tech sector.
As the tech sector continues to perform well, it's important for investors to stay informed about the latest developments and trends in the industry. By staying up-to-date on the latest news and data, investors can make informed decisions and potentially capitalize on the continued growth of the tech sector.
