US stocks ended Tuesday's trading session with a mixed performance, but the S&P 500 and Nasdaq indexes managed to record new record highs, supported by a strong upward trend in chip and technology stocks, while markets continued to monitor geopolitical developments in the Middle East and movements in oil and US bond prices.
The chip sector led the gains on Wall Street, after shares of Micron Technology jumped 19%, marking one of their strongest sessions in years, following market optimism about the company's growth prospects related to artificial intelligence and increasing demand for electronic chips.
The tech-heavy Nasdaq rose 1.2%, while the S&P 500 climbed about 0.6%, both closing at new record highs, surpassing previous peaks recorded on May 14.
In contrast, the Dow Jones Industrial Average fell by 0.2%, affected by the poor performance of some leading stocks.
These gains came after a strong week in the US markets, with the Dow Jones recording a new record close, while the S&P 500 posted gains for the eighth consecutive week, its longest weekly winning streak since late 2023.
Technology stocks continued to attract investor attention, with Dell Technologies shares rising more than 3% during the session, following a strong 17% jump last week, fueled by market optimism regarding the growing demand for artificial intelligence technologies and digital infrastructure.
In contrast, not all technology stocks benefited from the upward trend, with Nvidia closing down 0.2% despite early gains during the session, while the movements of the rest of the Great Seven stocks were mixed amid limited profit-taking.
On the other hand, AutoZone's stock came under strong pressure after it fell by about 9%, following the announcement of quarterly results that fell short of analysts' expectations, both in terms of sales and profits, making it one of the biggest losers within the S&P 500 index.
In energy markets, oil prices remained volatile amid continued conflicting signals regarding US-Iranian relations. West Texas Intermediate crude futures fell by about 3% to trade below $94 a barrel after US President Donald Trump indicated that peace talks were going very well.
But on the other hand, geopolitical concerns resurfaced after US forces carried out strikes targeting two Iranian ships that Washington said were trying to plant mines in the Strait of Hormuz, pushing global Brent crude up by more than 3.5% to surpass $99.50 a barrel.
In the bond market, the yield on 10-year US Treasury bonds fell below 4.50%, after being above 4.56% at the end of last week, which provided additional support for growth and technology stocks.
In precious metals, gold fell 0.4% to settle above $4,500 an ounce, while the US dollar index edged down slightly to 99.16 points.
As for the cryptocurrency market, it saw a cautious performance, with Bitcoin falling to around $75,900 after approaching $77,400 during overnight trading, amid continued pressures resulting from global uncertainty.
Analysts believe that markets remain highly sensitive to any geopolitical or economic developments, especially given ongoing concerns about inflation and interest rates. Dean Chen, an analyst at Bitunix, noted that the cryptocurrency market will remain closely tied to global liquidity and risk appetite until economic uncertainty significantly diminishes.
Market expectations for the performance of global financial markets today
As for today's forecasts, the US markets are likely to remain under the influence of two main factors: the first is developments in the US-Iran file and whether the negotiations will move towards de-escalation or escalation, and the second is investors' anticipation of upcoming US economic data, especially inflation and consumer spending indicators, which may reshape US interest rate expectations in the coming period.
The technology and artificial intelligence sector is also expected to continue attracting liquidity, especially after the strong performance of chip stocks, while volatility in oil and cryptocurrency markets may persist as investors become increasingly sensitive to global political and economic news.
