The Nasdaq 100 closed at a record high on Tuesday as stocks, led by the tech sector, rallied after Israel and Iran agreed to a ceasefire.
The tech-heavy index rose 1.5% on Tuesday to 22,190, its first record closing high since February 19. The broader S&P 500 advanced 1.1% to finish the day less than 1% away from a record, while the Dow Jones Industrial Average remains about 4% off its all-time high.
Investors were in risk-on mode on Tuesday after Israel and Iran on Monday night agreed to a ceasefire. The status of the truce was briefly in question Tuesday morning when President Trump accused both sides of violating the agreement. But investors were encouraged throughout the day by signs the peace was holding, including Israel’s decision to lift most wartime restrictions and fully reopen major airports.
Tech stocks led Tuesday’s rally, with nearly all of the Magnificent Seven stocks advancing. Microsoft (MSFT) gained nearly 1% to set a new all-time high, while AI chip giant Nvidia (NVDA) added 2.6% to close at its highest price since January. Amazon (AMZN) and Meta (META) each added about 2%, and Alphabet (GOOG) tacked on 1%. Tesla (TSLA) and Apple (AAPL) were the laggards of the group, declining 2.4% and 0.6%, respectively.
Chip stocks soared, led by Advanced Micro Devices (AMD) and Intel (INTC), which each climbed more than 6%, while Broadcom (AVGO) notched a record high after jumping 4%. The PHLX Semiconductor Index (SOX) advanced 3.8%.