Nasdaq sets record high, oil dips on improved crude flows

The Nasdaq Composite achieved a record closing high on Tuesday, propelled by strong performance from Micron Technology and other artificial intelligence-related stocks. Meanwhile, oil prices and Treasury yields experienced a decline as improved crude flows through the Middle East boosted market sentiment. The S&P 500 remained relatively steady, while the Dow Jones Industrial Average saw a slight drop.

The MSCI gauge for global stocks also rose marginally. Lower oil prices contributed to a more risk-tolerant market environment. Iran's potential reopening of the Strait of Hormuz within seven days, contingent on easing US military pressure and blockade lift, further bolstered the optimistic outlook. However, the US 10-year Treasury yields fell slightly, aligning with the downward trend in oil prices.

Despite concerns about inflation, investors anticipate additional rate hikes from major central banks, keeping the dollar relatively strong. The upcoming meeting between US President Donald Trump and Chinese President Xi Jinping will be closely monitored for its potential impact on the ongoing trade relationship and AI cooperation.