US Stocks Trade Mixed as Nasdaq Tests Record

US stock indices were mixed on Tuesday as the rebound in Treasury yields offset the extended rally for AI companies. The S&P 500 and the Dow swung lower, while the tech-heavy Nasdaq 100 rose 0.5% to a record high. Borrowing costs rebounded in afternoon traded as US President Trump delivered escalatory remarks against Iran in his UN speech, and dimmed hopes of a diplomatic effort to restore fuel exports from the Middle East. Credit-sensitive banks led the losses, with JPMorgan, Wells Fargo , and Morgan Stanley dropping 4% each. In turn, another strong session on the AI trade lifted software developers and AI infrastructure companies. The latest catalyst was the strong reception for Meta's Muse AI agent. Meta shares were 13% higher in the last two sessions, while Micron gained 3%. On top of that, Sandisk rose on an upgrade from Rosenblatt.

The Dow Jones Index is picking up 110 points or 0.21 percent on Tuesday. Gains are led by Amgen (2.92%), Sherwin-Williams (1.81%) and Nike (1.72%). Biggest losers are Cisco Systems (-1.75%), J&J (-1.35%) and Caterpillar (-1.28%).

US stock indices were muted on Tuesday, holding on to yesterday’s gains, supported by lower energy prices and optimism over revenue growth from AI agents. The S&P 500 and Dow inched higher to hover less than 0.5% away from record highs touched last month, and the Dow booked small gains. Stocks were broadly higher as oil and fuel prices softened for a fifth session following signs that Iran, the GCC, and the US could chase diplomacy to restore some oil trade in the Persian Gulf, trimming the surge in bond yields this month. AI hyperscalers, which have issued record levels of corporate debt despite high borrowing costs, were higher with Microsoft, Oracle, and Alphabet adding 1%. Banks and industrials also gained. In turn, chip producers held most of their surge yesterday, buoyed by positive responses from Meta's Muse AI agent. AMD, Micron, and Intel were flat.