S&P 500 and Nasdaq Hit Record Highs on AI Chip Surge

The S&P 500 and Nasdaq hit new record highs Tuesday, fueled by a strong rally in AI chip stocks. The surge reflects growing investor confidence in the technology sector.

The rally follows the April 7 conditional ceasefire between the U.S. and Iran, which eased geopolitical tensions and sent Brent crude down 13%. The de-escalation has helped stabilize supply chains, though uncertainty remains over whether the truce will hold.

Analysts say the current climate supports a cautiously optimistic outlook. The Federal Reserve's next move on interest rates, along with key earnings reports from major S&P 500 companies, will be closely watched. Any shift in the U.S.-Iran situation could quickly alter risk sentiment.