US sharemarkets rose to fresh record highs on Tuesday as gains in semiconductor and artificial intelligence-linked stocks outweighed ongoing concerns surrounding inflation and the Iran war.
The S&P 500 gained 0.61% to close at 7,519.12, while the Nasdaq Composite climbed 1.19% to 26,656.18. Both indices reached fresh intraday and closing records during the session. The Dow Jones Industrial Average fell 118.02 points, or 0.23%, to finish at 50,461.68.
Technology stocks again drove market gains, with Micron Technology surging 19% and briefly surpassing a US$1 trillion market capitalisation after analysts lifted expectations for the company’s growth prospects tied to artificial intelligence infrastructure spending.
Investor sentiment was also supported by hopes that negotiations between the United States and Iran could eventually lead to an agreement to end the war.
President Donald Trump said talks with Iran were “proceeding nicely”, although the US also confirmed it carried out “self-defence” strikes in southern Iran targeting missile launch sites and Iranian boats attempting to place mines.
Investors also continued reassessing expectations for US interest rates as elevated energy prices and inflation pressures tempered hopes for Federal Reserve rate cuts.
Gold fell as much as 1.5% as the US dollar strengthened.
Australian Market Outlook
Australian shares are expected to open little changed despite fresh record highs on Wall Street as investors balance optimism around artificial intelligence-related stocks against ongoing volatility in oil markets.
S&P/ASX 200 futures point to a relatively flat open following gains in US technology stocks overnight.
Technology shares may remain in focus locally.
Oil market volatility is also likely to remain a key driver for sentiment after Brent crude recovered towards US$100 a barrel following sharp swings earlier in the week.
Investors will also monitor inflation data due on Wednesday, while the Reserve Bank of New Zealand is widely expected to leave interest rates unchanged at its policy meeting.
