Wall Street closes at record as chipmaker optimism and stable oil prices fuel gains

Wall Street closed at a record high on Tuesday, fueled by renewed enthusiasm for chipmakers and oil prices settling at levels seen before the Iran war.

The Dow Jones Industrial Average rose 0.29%, the S&P 500 climbed 0.72%, and the Nasdaq Composite saw a 1.12% increase. This global market upturn was reflected in MSCI's world stock gauge, which gained 0.41%.

The artificial intelligence boom continued to shape market sentiment. SK Hynix announced a US share sale valued at up to $28.07 billion, with indications of interest reaching $7 billion. Broadcom also extended its chip development and supply partnership with Apple until 2031.

However, the tech sector also saw a downturn, with Microsoft announcing approximately 4,800 job cuts, representing 2.1% of its global workforce. Investors are closely monitoring AI-related companies as the earnings season approaches, with some concerns about a potential bubble.

Oil prices remained stable, with US crude at $68.69 a barrel and Brent crude at $72.10. Despite ongoing U.S.-Iran peace talks, maritime traffic through the Strait of Hormuz continued, with 160 vessels reported transiting. Saudi Arabia's decision to slash its official selling prices may offer some relief to the private sector.