Nasdaq nears fresh record as AI optimism reignites
The tech-heavy Nasdaq surged on renewed enthusiasm for artificial intelligence products, particularly Meta's new Muse tool, pushing the index toward its first record high since June.
Tech stocks lead the market higher
Global equity markets rose in choppy trading on Tuesday as technology shares were boosted by renewed optimism about artificial intelligence. According to The Globe and Mail, the Nasdaq closed at its first all-time high since June 2 the previous day. Separately, Bloomberg (via Yahoo! Finance) reported that the Nasdaq 100 Index climbed as much as 0.7% on Tuesday to 30,699 points, a level that exceeded its June record close, before paring some of the gains.
The main driver was Meta Platforms, whose shares jumped more than 11% the previous session — its largest one-day gain since April 2024 — fueled by enthusiasm for its new AI product, Muse. The rally spread to other AI-linked names: chipmaker AMD crossed the $1 trillion valuation mark, Intel rose 12.2%, and Arm Holdings gained 17%. As reported by Yahoo! Finance, Shopify shares climbed 7% after announcing a partnership with Meta tied to Muse.
Analysts weigh in
Kathleen Brooks, research director at XTB, said the rally suggests demand for costly AI tools remains robust, justifying the massive capital spending by hyperscalers. Interactive Brokers chief strategist Steve Sosnick noted that during recent bouts of selling, investors mostly trimmed positions rather than fully exiting the tech sector, showing continued willingness to chase rallies.
Oil and other markets
Oil prices fell after reports that Iran signaled it could reopen the Strait of Hormuz within seven days if the U.S. eases military pressure. Brent crude dropped 1.5% to $98.79 a barrel, while WTI slid 2.2% to $90.34. Saudi Arabia also expects to resume operations on a major east-west pipeline this week. Gold prices eased roughly 0.5–0.6%. European markets mostly advanced, with the STOXX 600 up 0.46% and Germany's DAX up 0.61%. The Canadian dollar weakened against the U.S. dollar, trading at 1.4052 per USD, while the U.S. 10-year Treasury yield stood at 4.943%.
