New York stocks hit another record high on optimism over artificial intelligence (AI) despite the headwind of a surge in international oil prices. Oil prices jumped on concerns that U.S.-Iran cease-fire talks could wobble, but a tech-led rally centered on Nvidia lifted the market.
On the 1st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 0.09% from the previous session at 51,078.88. The Standard & Poor's (S&P 500) index rose 0.26% to 7,599.96, and the Nasdaq composite finished up 0.42% at 27,086.81. All three major indexes ended at a record high on a closing basis.
Nvidia led the market higher. At the "GTC Taipei" event in Taiwan that day, Nvidia unveiled the first AI PC chip "N1 X," co-developed with Microsoft, officially signaling its entry into the AI laptop market. Nvidia shares surged 6.26%.
Expectations for an expanding AI PC market spread to related corporations. Dell Technologies and HP, which announced plans to adopt Nvidia chips, rose 10.70% and 9.20%, respectively. Software, seen as a beneficiary of AI's spread, also rallied. Salesforce, Inc. jumped 9.68%, and major software companies including ServiceNow (9.24%), Intuit (6.71%), and Adobe (5.72%) gained across the board.
During the session, the market also showed volatility on Middle East geopolitical risks. Oil prices surged after local reports said Iran suspended cease-fire talks with the United States in protest of Israel's strikes in Lebanon.
But U.S. President Donald Trump said he mediated a halt to fighting between Israel and Hezbollah and noted that talks with Iran are "progressing at a rapid pace," helping risk sentiment recover. The rise in oil also partly cooled. Brent futures settled at $94.98 a barrel, up 4.2% from the previous session, and West Texas Intermediate (WTI) futures finished at $92.16 a barrel, up 5.5%.