Dow Jones surges 200 pts at open; NASDAQ 100 and the S&P open on a flat note on Tuesday

The US stock market opened on a positive note on Tuesday, extending Monday's rally. The Dow Jones surged over 200 points, while the S&P 500 and the NASDAQ 100 edged as much as 0.2% higher on Tuesday.

Meanwhile, the macroeconomic cues turned positive as the crude oil prices extended their pullback on Tuesday, falling 2%. Similarly, the Treasury yields too continued to edge lower, dropping below 4.93%. Yields have topped out since the Federal Reserve hiked the interest rate in the previous week.

Shares of AI hyperscalers extended their gains for the second consecutive session this week as drop in Treasury yields alleviated worries of higher borrowing costs. The AI hyperscalers have raised record money to fund the AI infrastructure capacity expansion as computing demand explodes.

Shares of Megacap stocks like Apple Inc (+0.9%), Alphabet Inc (+1.9%) and Meta Platforms (+0.5%) were among the top gainers. While shares of Nvidia (-0.02%), Microsoft (-0.8%), Tesla (-0.2%) were the top losers in Tuesday's regular trading session.

Meanwhile, investors will also pay close attention to President Trump’s address at the United Nation General Assembly (UNGA) later today to get cues for geopolitical stability. Besides this, Chinese President Xi Jinping's first US visit in three years, will also be closely watched as both the countries aim to secure AI safety and security.

Amid the optimism around Xi-Trump's meeting, the Asian markets closed in green across the board.The Chinese Shanghai Composite, Korean Kospi and Hong Kong’s Hang Seng surged as much as 0.2% on Tuesday.