Key Takeaways
- Nasdaq Composite and S&P 500 indices closed at all-time record highs of 26,648.95 and 7,519.26, respectively, fueled by geopolitical optimism and a massive rally in technology.
- Micron Technology (MU) shares surged nearly 20%, briefly pushing the company’s market capitalization above $1 trillion following a landmark price-target increase from UBS.
- Qualcomm (QCOM) secured a significant deal to supply millions of AI data-center chips to ByteDance, marking a major expansion into AI infrastructure.
- USTR Jamieson Greer confirmed the Trump administration has no interest in reinstating tariff exclusion programs, maintaining a hardline stance on Chinese investment and trade.
- NASA awarded more than $700 million in combined contracts to Blue Origin, Astrolab, and Lunar Outpost for the development of lunar rovers and terrain vehicles.
The Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) climbed to fresh record closing highs on Tuesday as investors grew increasingly optimistic about a potential US-Iran peace agreement. The Nasdaq gained 1.16% to finish at 26,648.95, while the S&P 500 rose 0.61% to 7,519.26, surpassing previous records set on May 14.
Optimism regarding a diplomatic resolution in the Middle East outweighed renewed military activity near the Strait of Hormuz, with investors betting that the conflict’s worst economic risks may be easing. The rally was supported by falling oil prices and declining Treasury yields, which helped temper inflation concerns and led traders to scale back expectations for aggressive Federal Reserve tightening.
The technology sector led the day's gains, spearheaded by a historic performance from Micron Technology (MU). Shares of the memory chipmaker skyrocketed after UBS raised its price target to $1,625, citing a structural shift in the industry driven by AI demand. Micron briefly surpassed a $1 trillion market valuation during the session, reinforcing the continued momentum in the semiconductor sector.
Qualcomm (QCOM) also saw significant gains following reports that it secured a deal to supply millions of AI data-center chips to ByteDance. The partnership is a pivotal win for Qualcomm, as it seeks to diversify its revenue streams beyond the smartphone market and establish a stronger foothold in the booming AI infrastructure space.
In Washington, U.S. Trade Representative Jamieson Greer provided clarity on the administration’s trade policy during a CFR event. Greer stated that Chinese investment in the U.S. will continue to be reviewed on a case-by-case basis and emphasized that the Trump administration is not interested in reviving tariff exclusion programs.
Greer further noted that Section 301 investigations will seek public comments on any proposed measures, while the U.S. intends to improve Africa growth deals. These efforts are aimed at better aligning African economies with the U.S. to counter rival global influences.
On the aerospace front, NASA announced a series of major contract awards for its upcoming lunar missions. Blue Origin received a contract worth up to $280.4 million for Moon South Pole rover missions, while Astrolab and Lunar Outpost were awarded approximately $219 million and $220 million, respectively, for the first phase of Lunar Terrain Vehicles (LTVs).
In other political developments, President Trump announced that a scheduled Cabinet meeting was moved to the White House due to inclement weather, resulting in the postponement of a planned trip to Camp David. Separately, an SEC filing showed that the BlackRock Private Credit Fund, managed by BlackRock (BLK), sold 376,795 institutional class shares for $8.91 million earlier this month.
The Dow Jones Industrial Average (^DJI) was the only major index to finish in the red, falling 0.22% to 50,466.15. The divergence highlighted a clear market preference for high-growth AI and technology stocks over traditional blue-chip equities as the broader market reached new heights.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.