Nasdaq sets record high on AI optimism, oil drops below $100

The tech-focused Nasdaq Composite achieved an all-time high closing price on Tuesday, while oil prices and Treasury yields experienced declines amid trading volatility due to improved Middle East oil exports. The surge in Nasdaq was attributed to Micron Technology and other AI-related stocks, with demand for AI products remaining strong and corporate earnings maintaining stability.

UBS' chief investment officer in the Americas, Ulrike Hoffmann-Burchardi, expressed confidence in the AI sector, citing increasing usage, monetization, and rising capital expenditures. The Nasdaq Composite rose 0.45 percent, while the S&P 500 remained unchanged, and the Dow Jones Industrial Average fell 0.36 percent.