The S&P 500 and the Dow Jones Industrial Average hit new highs on Tuesday as investors shrugged off the recent US attack on Venezuela.
The broad market index rose 0.6% to set a new all-time intraday high. The Dow, the index of leading American companies, advanced by about 485 points, or almost 1%, and also reached an intraday maximum. The Nasdaq Composite rose 0.7%.
Magnificent Seven member Amazon lifted the three major indexes, rising more than 3%. Other AI-related stocks also supported the broader market, including Micron Technology and Palantir Technologies. Micron advanced more than 10%, while Palantir rose more than 3%.
It’s only the third trading day of the new year, and semiconductor stocks are already on the rise, with Micron among the leaders. With Tuesday’s gains, the stock is up about 18% year-to-date. It comes after a successful year for the name, as it rose more than 240% in 2025.
“Technology kind of stalled at the end of the year, but I don’t think anyone is questioning that AI is a game-changing technology,” said Ross Mayfield, investment strategist at Baird.
“We’re seeing chip stocks leading the way. That’s probably expected, but that cyclical rotation is still continuing.”
“You can have AI trading and technology stocks that work, as well as other cyclical components of the market,” he continued. “That’s something you might expect in an economy that’s going to overheat in 2026 with interest rate cuts, plenty of fiscal stimulus and enthusiasm for artificial intelligence nearing a peak,” SEEbiz reports.
The benchmark 30-share index closed at a record high on Monday and hit a daily session high after the U.S. ousted Venezuelan leader Nicolas Maduro over the weekend and President Donald Trump encouraged heavy investment by U.S. oil companies.
Energy stocks were mostly higher on Monday, with the energy sector within the S&P 500 posting its best one-day gain since July.
