Nasdaq sets record high, oil dips on improved crude flows

The Nasdaq Composite achieved a record closing high on Tuesday, propelled by Micron Technology and other AI-related stocks, as demand for artificial intelligence continued to soar and corporate earnings maintained their strength. Tech stocks powered the index, while oil prices and Treasury yields experienced a dip in choppy trading due to improved Middle East crude flows.

The Nasdaq gained 0.45%, the S&P 500 remained flat, and the Dow Jones Industrial Average declined by 0.36%. MSCI's global stock gauge also rose by 0.11%. European markets fared better, with the pan-European STOXX 600 index increasing by 0.13%. Lower oil prices contributed to the risk appetite, after Iran announced its potential to reopen the Strait of Hormuz within a week if the U.S. eases military pressure and lifts its blockade on Iranian ports.

Oil prices declined further as Saudi crude restarted the East-West pipeline and increased flow through the Strait of Hormuz, which previously carried 20% of global supply. US 10-year Treasury yields fell by 1 basis point to 4.953%, following the Federal Reserve's decision to raise rates and signal further tightening amid persistently high inflation.

The dollar strengthened slightly against the euro and Japanese yen, while a meeting between U.S. President Donald Trump and Chinese President Xi Jinping was anticipated to address potential improvements in bilateral relations and AI cooperation.