Market Highlights

US stocks closed at a new record on Tuesday, continuing a run driven by investor optimism over artificial intelligence and expectations of easier monetary policy from the Federal Reserve. The S&P 500 Index finishedup 0.6% to top a closing high hit in late December. The tech-heavy Nasdaq 100 Index climbed 0.9%, while the small-cap focused Russell 2000 notched a 1.4% gain. Stock investors have largely shrugged off tensions in Venezuela to extend a three-year bull run fueled by demand for AI–linked shares. A weaker than expected US Services PMI reading reported on Tuesday bolstered rate cut hopes, with business activity and jobs market data due later this week. The record-breaking global stock rally lost momentum after a sharp run-up left markets showing signs of overheating.