Semiconductor shares jumped on fresh artificial-intelligence optimism, lifting major indexes and pushing the Dow to a new high.
By yourNEWS Media Newsroom
U.S. stocks finished sharply higher Tuesday, powered by a broad rally in semiconductor shares tied to renewed enthusiasm around artificial intelligence, while the Dow Jones Industrial Average closed at a record after climbing nearly 500 points past the 49,000 mark.
Chipmakers led the advance after executives and investors focused on next-generation AI hardware unveiled at the Consumer Electronics Show in Las Vegas. Nvidia Chief Executive Jensen Huang outlined forthcoming processors that integrate a new layer of storage technology, sparking gains across memory and data-storage names. SanDisk, Western Digital, Seagate Technology and Micron Technology all notched record highs, while the PHLX semiconductor index hit an all-time peak and rose about 8% over the first three trading sessions of 2026.
Healthcare also contributed to the upside as Moderna rallied after Bank of America Global Research raised its price target on the vaccine maker, lifting the S&P 500 healthcare sector.
“I think we’re going to have a very strong earnings season for Big Tech, and all those capital-expenditure estimates are going to be revised higher again,” said Jed Ellerbroek, a portfolio manager at Argent Capital in St. Louis.
Investors are now turning their attention to a slate of economic data expected to clarify the labor market after the effects of a record 43-day federal government shutdown. Releases this week include the Job Openings and Labor Turnover Survey on Wednesday and the December jobs report on Friday. Any signs of cooling employment could bolster expectations for interest-rate cuts later this year.
Valuations remain elevated heading into the fourth-quarter earnings season. The S&P 500 is trading at roughly 22 times forward earnings, down modestly from November but still above its five-year average of 19, according to LSEG data.
By the closing bell, the S&P 500 added 42.92 points, or 0.61%, to 6,944.97. The Nasdaq Composite gained 147.40 points, or 0.63%, to 23,543.22. The Dow Jones Industrial Average climbed 489.12 points, or 1.00%, to finish at 49,466.30, putting it within reach of the historic 50,000 level.
Economic data released Tuesday showed S&P Global’s final composite purchasing managers’ index slipped to 52.7 in December from 53.0 in November, while the services PMI eased to 52.5 from 52.9, signaling continued expansion but at a slightly slower pace.
Markets also weighed comments from Richmond Federal Reserve President Tom Barkin, who reiterated a cautious stance on additional rate cuts, contrasting with calls for more aggressive easing from other policymakers.
Geopolitical concerns were largely brushed aside after U.S. forces captured Venezuelan leader Nicolás Maduro over the weekend, with some investors betting the move could eventually open access for U.S. companies to Venezuela’s oil reserves.
Energy shares dipped after strong gains a day earlier, with Exxon Mobil and Chevron slipping. Stocks tied to data-center cooling fell after Huang highlighted efficiency improvements in Nvidia’s new chips, raising questions about future demand for cooling systems. Johnson Controls and Trane Technologies declined, while AIG dropped after the insurer announced that Chief Executive Peter Zaffino would step down.
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