Nasdaq Hits Record High with Nvidia's Surge, Defies Wall Street Lull

The Nasdaq Composite reached another record closing due to Nvidia's share surge, despite other Wall Street indices declining. This performance marks Nasdaq's fourth record close in five sessions, influenced by Nvidia's AI chip plans. Investor response was mixed, reflecting shifting market dynamics amid ongoing inflation concerns and banking earnings.

The Nasdaq Composite continued its impressive streak, closing at a record high on Tuesday. This surge was primarily fueled by Nvidia, whose shares rose after announcing the resumption of its AI chip sales to China. This marked the technology index's fourth record close in five days.

Amid this tech rally, the broader market lagged. Both the Dow Jones Industrial Average and the S&P 500 fell as investor excitement was tempered by inflation data and mixed bank earnings. Concerns over tariffs impacting inflation persist but are not disrupting market optimism entirely, according to experts.

Analysts noted that while Nvidia's gain was a significant driver, the tech-heavy market continues to face volatility. The ongoing earnings season will further test investor sentiment as companies report their ability to manage tariff-related costs.

(With inputs from agencies.)