NASDAQ 100 and S&P 500 hit record highs as crude oil and bond yields cool off; Dow Jones surges 350 points

The US stock market opened upbeat on Tuesday, extending its rally from Monday. The buoyancy was largely driven by the softening of Treasury yields and crude oil prices. The tech-heavy NASDAQ 100 index surged over 180 points, and the S&P 500 jumped 0.5%, hitting a fresh record high. The Dow Jones surged over 350 points at the same time as industrial and financial stocks also saw strong demand.

The crude oil price fell for the third consecutive day and over 4% this week alone, easing off some pressure from investor sentiment. Though the diplomatic confrontation continues between the US and Iran, supply remains unaffected, bringing oil prices down.

Saudi Arabia’s Energy Minister said that the east-west pipeline remains fully functional and is shipping 5.8 million barrels per day. Additionally, the reports also indicate that Middle East oil exports reached pre-war levels in the last four days of September.

On the other hand, US Treasuries cooled off from record-high levels, still trading above two-decade high levels. The US 10Y slipped below 5.30%, after hitting 5.34% levels on Monday. Similarly, the US 30 Y yields fell below 5.70% on Tuesday, easing off some fears of higher interest rates.

Meanwhile, at the stock-specific level, the tech stocks stood out as the top gainers during Tuesday’s opening session. Among the semiconductor pack, Astera Labs (+7%), Marvell Technology (+6.5%), Tower Semiconductor (+6.2%), Credo Technology Group (+5.2%), MACOM Technology Solutions (+4.4%), Broadcom (+4%), AMD (+2.1%), and NVIDIA (+1.6%) were the top gainers.

All the megacap stocks traded in the green on Tuesday, except for Meta Platforms, which fell 0.6%. Besides NVIDIA, Apple Inc. gained 0.27%, Microsoft jumped 2.2%, and Alphabet traded flat to positive on Tuesday.

Shares of Constellation Energy Corporation surged over 12% on Tuesday as it partnered with Alphabet to bring 90 Megawatts (MW) of nuclear energy to the PJM Grid as part of a long-term deal.

NASDAQ 100 hits record highs

Artificial Intelligence continues to remain the most investable and attractive theme this year as the technology benchmark index NASDAQ 100 made fresh record highs on Tuesday, despite AI-safety concerns looming. The NASDAQ 100 has surged more than 15% in a more than two-month period and delivered roughly 18% returns in 2026 on a YTD basis.