The S&P 500 hit a record closing high on Tuesday, while the tech-heavy Nasdaq notched further gains, as AI-fueled optimism offset concerns over Middle East peace talks, which were compounded by recent U.S. strikes on Iran. Semiconductor stocks, which have surged on AI-driven demand, led gains, with Micron gaining sharply, hitting $1 trillion in market value for the first time after UBS increased its price target on the stock to $1,625 from $535.
Upbeat earnings and renewed confidence in AI trade have driven U.S. equities higher despite the ongoing conflict with Iran, with investors now turning their attention to IPOs of some of the largest private AI companies, including SpaceX.
