Dow Jones Hits New Record High Supported by Rate Cut Bets and Semiconductor Rally

New York | EcoPulse24

U.S. stocks extended their modest gains on Tuesday, as investors continued to bet on the Federal Reserve lowering interest rates multiple times, raising expectations for improved earnings growth in the coming period.

The Dow Jones Industrial Average climbed more than 250 points to a new record high. The Nasdaq 100 added about 0.6%, while the S&P 500 rose nearly 0.3%, approaching its own all-time high.

The market's performance was boosted by a strong rebound in semiconductor stocks after a previous session decline, as investors reassessed elevated valuations in the sector. Shares of Micron, Texas Instruments, Analog Devices, and NXP surged between 6% and 8%.

The healthcare sector also saw notable gains, with Eli Lilly rising about 1% and UnitedHealth up nearly 2%, supporting the main indices.

Conversely, energy stocks retreated as markets largely overlooked geopolitical tensions linked to developments in Venezuela. Chevron fell around 3% after previous gains, while shares of major Gulf Coast heavy-oil refiners Phillips 66, Valero, and Marathon Petroleum declined by more than 1%.

Overall, U.S. markets reflect cautious confidence in monetary policy direction, while investors remain selective regarding sectors sensitive to geopolitical volatility and growth assessments.