Wall Street's Surge: Chip Stocks and AI Optimism Drive New Highs

Wall Street saw gains on Tuesday, driven by a surge in chip stocks due to new AI developments, Moderna's significant rise, and record-breaking highs in indexes. Investors anticipate strong earnings forecasts for Big Tech and eye upcoming economic data for indications on possible interest rate cuts.

Wall Street closed positively on Tuesday, as the tech sector led a rally inspired by fresh developments in AI technology. Moderna, spurred by an upgraded price target, contributed to the upward movement, as did chipmakers like SanDisk and Nvidia, helping indexes record historic highs.

SanDisk and Western Digital were among tech stocks enjoying substantial gains. The PHLX chip index achieved a new record, reflecting optimism in the sector's performance. Investors are eagerly anticipating the quarter's earnings reports, though caution against potential overvaluations remains.

Market participants closely monitor economic indicators that could influence central bank policies. Meanwhile, the detainment of Venezuelan President Nicolas Maduro has not spooked investors, who anticipate opportunities in Venezuela's oil reserves. Despite some dips in oil stocks and other specific sectors, the market overall remained robust.

(With inputs from agencies.)