Wall Street Hits Record as AI Rally Lifts Chip Stocks
Rendy Andriyanto
Gotrade Team
Reviewed by Gotrade Internal Analyst
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Gotrade News - Wall Street notched a fresh record on Tuesday (3/6) as the S&P 500 closed at 7,609.78, up 0.13%. The Dow Jones jumped 0.45% or 228.91 points to 51,307.79, while the Nasdaq Composite edged up 0.03% to 27,093.90.
The rally was fueled by artificial intelligence enthusiasm that propelled US technology and semiconductor stocks higher. Investors largely shrugged off rising US-Iran tensions, pushing megacap chipmakers to lead another broad market advance.
Key Takeaways
S&P 500 closed above 7,600 for the first time, riding a powerful chip-sector rally.
Marvell Technology soared 32% and HPE jumped 19%, leading semiconductor and hardware gains.
Nine-day winning streak marks the longest S&P 500 run since May 2025 despite Iran risks.
What's Driving the Rally
The Philadelphia Semiconductor Index surged nearly 6%, becoming the main engine of Tuesday's broad market gains. Chip stocks caught fresh tailwinds after a flurry of bullish headlines from major technology issuers during the session.
According to Katadata, Marvell Technology (MRVL) rocketed 32% on the day. The surge followed remarks from Nvidia (NVDA) CEO Jensen Huang, who flagged Marvell as the next likely $1 trillion market-cap candidate.
Hewlett Packard Enterprise (HPE) also jumped 19% after the company raised its full-year guidance. HPE's second-quarter results also handily topped Wall Street consensus estimates, reinforcing AI-server demand strength.
Bucking the upbeat trend, Alphabet shares fell about 4% after disclosing a large capital raise. The Google parent announced an $80 billion fundraise, including $10 billion from Berkshire Hathaway earmarked for AI development.
As reported by Bloomberg Technoz, the S&P 500 logged a nine-day winning streak, its longest stretch since May 2025. The persistent advance underscores how thoroughly the AI theme is steering US equity markets.
Louis Navellier, a market strategy analyst, noted that the technology sector continues to dominate broader market action. His view aligns with the heavy concentration of gains within AI-linked and semiconductor names.
On the macro side, Iran reportedly halted indirect peace negotiations with the United States that had been running through intermediaries. Tehran is also said to be preparing plans to block the Strait of Hormuz, a strategic global oil chokepoint.
President Donald Trump countered that talks with Iran remain on track and constructive. His comments stand in stark contrast to Iranian state media reports indicating that dialogue has been fully suspended.
David Krakauer, VP of Portfolio Management at Mercer Advisors, said markets stayed relatively stable despite the rising tensions. He cautioned, however, that the gains remain heavily concentrated in a handful of large-cap technology names.
Oil prices climbed alongside the tensions, with WTI crude up 1.74% to $93.76 and Brent rising 1% to roughly $96. Energy markets are pricing in supply-disruption risk even as equities power higher on AI optimism.
Per Bloomberg Technoz, Sydney and Tokyo futures pointed to a higher Asian open on Wednesday. Hong Kong futures slipped slightly, signaling more cautious sentiment in Greater China.
Global investors will watch whether the AI-led momentum that lifted Wall Street can carry through Asia. Middle East developments will remain a key counterweight to risk appetite across regional equity markets.
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