The Nasdaq Composite index reached an all-time high on Tuesday, defying investor anxiety over artificial intelligence safety, elevated technology valuations, and the economic instability caused by the ongoing conflict between the United States and Iran. The tech-heavy benchmark climbed 0.45 percent, bringing its year-to-date gains above 17 percent.
Broader market indicators showed mixed results, with the S&P 500 closing virtually unchanged. In contrast, the Nasdaq 100, which tracks the 100 largest non-financial companies, surged 0.82 percent. Leading the rally were Monolithic Power Systems, a Florida-based power circuit manufacturer, which jumped 8.1 percent, and Canadian e-commerce giant Shopify, which rose 7.1 percent. Micron Technology also posted a 5 percent gain.
Major technology firms remained steady, with Nvidia, the world’s most valuable company, rising 0.7 percent and Apple edging up 0.2 percent. Meta Platforms saw a slight dip of 0.63 percent after an 11.4 percent surge the previous day driven by enthusiasm for its new AI assistant, Muse.
Global markets responded positively to the news. Asian exchanges opened higher on Wednesday, with Japan’s Nikkei 225 rising approximately 1.4 percent and South Korea’s Kospi gaining 0.1 percent. Hong Kong’s Hang Seng Index, however, fell more than 0.7 percent in early trading.
Oil prices stabilized following a significant drop the previous day, as reports emerged of improving energy flows from the Gulf region and prospects for renewed diplomacy between Washington and Tehran. Brent crude futures were trading at $99.18 per barrel as of 01:00 GMT.
On the diplomatic front, President Donald Trump stated that US and Iranian officials held a “very good” meeting during the United Nations General Assembly in New York. This occurred shortly after Trump warned during his UN address that he could “annihilate” Iran if Tehran failed to reach a deal regarding the war, which is approaching its seventh month. He indicated that further negotiations would take place in the “very near future.”
Analysts suggest these diplomatic signals have helped refocus attention on the earnings potential of the AI sector. Jay Goldberg, a senior analyst at Seaport Research Partners, noted that investors have been waiting for a tangible consumer application to justify massive artificial intelligence expenditures.
“We have been searching for a clear consumer use case to justify the AI spend, and many see Muse as just that product,” Goldberg told Al Jazeera. He added that while better products may emerge soon, Muse represents a significant step that has rekindled investor excitement about the long-term prospects of AI technology.
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