Optimism about a possible peace deal between Iran and the United States led to a new record on New York stock markets on Tuesday.
The sentiment overshadowed recent US attacks on Iranian targets, with hopes rising that talks between the two sides were progressing positively.
The gains came on the heels of a statement by US Secretary of State Marco Rubio to the effect that reaching a deal with Tehran was still possible despite recent hostilities in southern Iran.
Chip companies led the stock gains, and Micron joined the elite group of firms valued at over $1 trillion.
The S&P 500 closed 0.6% higher at 7,519.12 points, its highest-ever closing level. The Nasdaq climbed 1.2% to 26,656.18 points. However, the Dow Jones fell by 0.2% to 50,461.68.
Adding to investor confidence were better-than-expected figures on US consumer confidence. Though slightly lower than April, the Conference Board’s index for May exceeded economists’ forecasts.
Chip companies were a major highlight of the trading session. Micron shares surged by 19% after UBS analysts raised their price target for the semiconductor firm, whose market value now exceeds $1 trillion.
Qualcomm also gained 4.5% as it announced plans to supply chips for ByteDance’s data centres, which support AI applications.
