Nasdaq Reaches Record High as Artificial Intelligence Boom Overcomes Market Headwinds

Wall Street’s Nasdaq stock exchange has reached an all-time high, successfully brushing aside concerns regarding AI safety risks, elevated tech valuations, and the energy shocks stemming from the United States’ war on Iran.

The Nasdaq Composite index, heavily weighted with US tech giants like Nvidia, Apple, and Microsoft, climbed 0.45 percent on Tuesday, bringing its year-to-date gains to over 17 percent. Meanwhile, the Nasdaq 100 index jumped 0.82 percent, while the S&P 500 closed essentially flat.

Market gains were spearheaded by Monolithic Power Systems and Shopify, which surged 8.1 percent and 7.1 percent, respectively. Micron Technology increased by 5 percent, alongside chip giant Nvidia gaining 0.7 percent and Apple rising 0.2 percent. However, Meta Platforms dipped 0.63 percent following its 11.4 percent surge on Monday driven by excitement over its new AI assistant Muse.

In Asia, major stock markets opened higher on Wednesday, with Japan’s Nikkei 225 up about 1.4 percent and South Korea’s Kospi rising 0.1 percent, while Hong Kong’s Hang Seng Index fell over 0.7 percent. Oil prices remained largely flat after Brent crude futures traded at $99.18 a barrel.

US President Donald Trump reported a positive meeting with Iranian counterparts on the sidelines of the United Nations General Assembly in New York, signaling potential diplomatic progress as the war nears its seven-month mark. Jay Goldberg, a senior analyst at Seaport Research Partners in San Francisco, noted that these diplomatic signs have helped refocus investor attention on the profit-generating potential of AI, particularly highlighted by consumer interest in Meta Platforms' Muse.