US Stocks Hit New Highs on AI Optimism; Intel Surges on Apple Deal Speculation

The US stock market continued its upward trajectory on Tuesday, with major indices like the S&P 500 and Nasdaq reaching fresh record highs. This surge was largely fueled by the ongoing enthusiasm surrounding artificial intelligence (AI) stocks and a robust wave of corporate earnings reports that have exceeded expectations. A significant driver of the day's gains was Intel, whose stock price soared by nearly 13% amid speculation that Apple might engage the company for processor manufacturing. This news injected considerable optimism into the tech sector, reinforcing the market's positive sentiment. While the Philadelphia Semiconductor Index also saw a substantial increase of 4.23%, Taiwan Semiconductor Manufacturing Company's ADR experienced a slight decline of 1.79%. The market's resilience was further bolstered by the apparent stability of the ceasefire agreement between the United States and Iran, which helped to alleviate investor concerns about escalating geopolitical tensions in the Strait of Hormuz. This geopolitical calm, coupled with strong economic indicators, contributed to a decrease in Brent crude oil futures, though prices remained elevated.