U. S. stock markets experienced gains on Tuesday, led by a surge in technology stocks and fueled by optimism surrounding artificial intelligence. The Nasdaq Composite climbed 1.00% to 26,606.90, while the S&P 500 rose 0.57% to 7,516.11. However, the Dow Jones Industrial Average slipped 0.23% to 50,463.03 as non-tech blue chips lagged.
Micron Technology (MU) was a standout performer, jumping roughly 18% and achieving a $1 trillion market capitalization after UBS tripled its price target. UBS analyst Timothy Arcuri raised the firm's price target to $1,625 from $535, citing optimism around AI-driven demand. President Trump praised Micron at a rally on Friday for its investments in the U. S. economy, further boosting investor confidence. Other semiconductor stocks, including Arm Holdings, Marvell Technology, SanDisk, and Qualcomm, also saw premarket gains.
Oil prices rose due to renewed tensions in the Middle East. Brent crude, the international benchmark, increased 3% to $96.25 a barrel, recovering from a sharp decline on Monday. U. S. military strikes on Iranian targets raised concerns about supply disruptions, contributing to the price increase. West Texas Intermediate (WTI) crude fell 3.8% to $92.99 a barrel. The rise in oil prices also put pressure on gold prices, which decreased 0.6% to $4,544.33 per ounce, as concerns about prolonged high interest rates increased.
Geopolitical tensions continue to influence market sentiment. Despite earlier optimism about a potential U. S.-Iran peace agreement, renewed U. S. military action in southern Iran has created uncertainty. These tensions have particularly impacted companies with large fuel costs, with United Airlines rising 4.5% and Carnival gaining 3.7%. Investors are closely monitoring developments in the Middle East and their potential impact on global energy markets.
