Wall Street's Surge: AI Optimism and Record Highs Propel Chip and Healthcare Stocks

Wall Street experienced a notable rise, led by a surge in chip stocks due to renewed optimism in AI technology and a significant rally in Moderna shares. The Dow Jones Industrial Average reached a record high, driven by positive sentiments around big tech earnings and economic data amidst geopolitical developments.

Wall Street witnessed a significant upswing on Tuesday, driven primarily by a surge in chip stocks fueled by renewed optimism surrounding AI technology. Concurrently, Moderna shares skyrocketed by 10%, following BofA Global Research's decision to elevate its price target for the drugmaker. These movements played a pivotal role in the Dow Jones Industrial Average achieving a record high.

The session was marked by impressive performances from memory and storage technology stocks. SanDisk soared 23%, Western Digital jumped 16%, Seagate Technology rose 13%, and Micron Technology advanced nearly 8%, with all achieving record highs. The PHLX chip index itself climbed 2.7% as Nvidia's CEO outlined the company's upcoming AI processors during the Consumer Electronics Show in Las Vegas.

In the midst of these developments, market analysts, including Argent Capital's Jed Ellerbroek, anticipated a robust earnings season for big tech companies. Additionally, investors are eagerly awaiting reliable economic data, especially in light of the recent government shutdown. Meanwhile, geopolitical events, notably the capture of Venezuelan President Nicolas Maduro by U.S. forces, have raised speculation about potential opportunities for U.S. firms in Venezuela's oil sector.

(With inputs from agencies.)