Nasdaq Surges Nearly 600 Points to Record High as AI Stocks Fuel US Rally
On.cc · 5 SOURCESabout 1 hour ago2 MIN
Summary
US stock markets surged on Tuesday with the Nasdaq Composite Index hitting a record closing high, driven by AI-linked semiconductor stocks and falling energy prices. The Dow Jones Industrial Average rose 366 points to 52,048, the S&P 500 gained 114 points to 7,764, and the Nasdaq climbed 599 points (2.26%) to 27,122 . Market sentiment was supported by receding oil prices and declining Treasury yields as investors anticipated potential diplomatic breakthroughs during the UN General Assembly session regarding Middle East tensions . Hong Kong-listed ADR stocks tracked the US gains, with the ADR Index closing at 25,248 points, up 205 points . The rally was led by semiconductor giants, with AMD shares jumping 10% to surpass $1 trillion in market capitalization for the first time, while Arm Holdings surged 17.2% . Meta Platforms also rallied 11.4% following the launch of its new AI agent "Muse," which quickly went viral .
Key Points
- The Philadelphia Semiconductor Index surged 4.29% to 12,433, contributing to $1.2 trillion in single-day US market capitalization gains
- AMD shares rose 10% to achieve its first $1 trillion market cap milestone, while Arm Holdings climbed 17.2%
- Oil prices retreated for a fourth consecutive session, with WTI crude falling 4.51% to $95.78 per barrel and Brent crude dropping 3.4% to $100.34
- The US 10-year Treasury yield fell 5.53 basis points to 4.9408%, easing concerns about elevated borrowing costs
- Hong Kong's Hang Seng Index opened at 25,170 points, up 128 points, with Tencent rising 6.61% and Alibaba gaining 2.93%
Why It Matters
The Nasdaq's historic surge signals renewed confidence in AI and semiconductor sectors, which could lift Hong Kong-listed tech giants and chipmakers when markets open. The correlation between US ADR performance and local Hong Kong stocks means overnight US gains typically set a positive tone for Asian trading sessions . However, Morgan Stanley strategist Michael Wilson cautioned that energy prices could rise further and bond market volatility may trigger a market correction of up to 7%, potentially pushing the S&P 500 down to 7,100 points .
The Nasdaq's historic surge signals renewed confidence in AI and semiconductor sectors, which could lift Hong Kong-listed tech giants and chipmakers when markets open. The correlation between US ADR performance and local Hong Kong stocks means overnight US gains typically set a positive tone for Asian trading sessions . However, Morgan Stanley strategist Michael Wilson cautioned that energy prices could rise further and bond market volatility may trigger a market correction of up to 7%, potentially pushing the S&P 500 down to 7,100 points .