The US markets extended their previous session’s gains and ended higher on Tuesday with S&P 500 and Nasdaq closing at a record high after a rally around AI chipmakers and a dip in US treasury yields. Enthusiasm around artificial intelligence and expectations of robust corporate earnings supported technology stocks, adding momentum to the bull market. The booming AI investment cycle continues, with semiconductor chipmakers benefitting from a robust outlook. Marvell Technology (MRVL), a chipmaker, raised its forecast for revenue in the coming years because of a strong outlook for the AI buildout. As per a private report, shares of Advanced Micro Devices (AMD), another chipmaker, rose after CEO Lisa Su told reporters in Taipei that the company plans to ramp up its supply of semiconductor chips next year.
On the economic data front, the US trade deficit widened to $105.6 billion in August 2026 from a revised $92.8 billion in July, exceeding market expectations of $102.0 billion and marking its largest gap since March 2025. The widening was driven by a $17.2 billion surge in imports to an all-time high. US exports increased $4.5 billion to $315.2 billion in August 2026, driven by a $6.3 billion rise in industrial supplies and materials, mainly nonmonetary gold and crude oil. US imports surged $17.2 billion to an all-time high of $420.8 billion in August 2026. Meanwhile, the US Logistics Managers’ Index increased to 70.2 in September 2026 from 66.6 in August. It is the second-highest reading in four years, behind only June’s reading of 71.1.
Dow Jones Industrial Average surged by 253.38 points or 0.49 percent to 51,521.28, Nasdaq rose by 122.58 points or 0.45 percent to 27,599.89 and S&P 500 added 44.98 points or 0.58 percent to 7,818.93.
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