US Tech Surge Drives S&P 500 and Nasdaq to Record Closing Highs

US equity markets continued their upward trajectory on Wednesday, with the Nasdaq Composite and S&P 500 both securing new record closing highs. The Nasdaq surged 1.6%, adding 376.93 points to finish at 24,016.02, while the S&P 500 climbed 0.8%, gaining 55.57 points to close at 7,022.95. The rally was primarily driven by a renewed appetite for technology and AI-related assets, contrasted by a modest dip in the Dow Jones Industrial Average, which fell 0.2% to 48,463.72. This divergence highlighted a rotation into growth stocks amid shifting geopolitical expectations. Broadcom (AVGO) emerged as a primary catalyst, jumping 4.2% following the announcement of a multi-year strategic partnership to support Meta's (META) rapidly scaling artificial intelligence compute infrastructure. Conversely, Caterpillar (CAT) weighed on the Dow, tumbling 3.0%. Sector-wide, the Dow Jones U.S. Software Index saw a substantial 4.6% gain, while brokerage stocks also showed strength. Market sentiment was further bolstered by optimism surrounding potential peace talks between the U.S. and Iran. President Donald Trump expressed confidence that the conflict is nearing an end, suggesting that a final resolution would lead to a significant boom in the stock market. In the fixed-income market, the benchmark ten-year Treasury yield rose 2.6 basis points to 4.282%. Internationally, Asian markets were mostly positive, with Japan's Nikkei 225 climbing 0.4%, while European indices largely trended lower, with the exception of Germany's DAX.