The Nasdaq Composite climbed to a new intraday record on Tuesday as technology stocks returned to the front of the U.S. market rally, helped by renewed enthusiasm around artificial intelligence and a pullback in oil prices.
Reuters reported that the index reached 27,212.68, moving above its previous intraday high from June 1. The move completed a notable recovery after the Nasdaq had fallen more than 10% from its July highs amid doubts about whether massive AI spending would translate into profits quickly enough.
Chip stocks power the rebound
Semiconductor shares were among the strongest contributors. AMD’s market value moved above $1 trillion, while the Philadelphia Semiconductor Index rose to its highest level in more than a month. The broader technology sector also benefited from continued demand for AI infrastructure, software and computing capacity.
Investors have been reassessing the durability of the AI trade after a volatile summer. Recent corporate results and product launches have helped restore confidence that spending on data centers, advanced chips and AI services will remain elevated into 2027.
Oil prices ease pressure on markets
The market also drew support from lower crude prices. Brent briefly moved below $100 a barrel as investors reacted to signs that Iran could reopen the Strait of Hormuz under certain conditions and to improved supply expectations from Saudi Arabia.
Lower oil prices can reduce pressure on inflation expectations and corporate costs, particularly for transportation, manufacturing and consumer-facing industries. That gave investors another reason to rotate back toward growth shares after a period when energy shocks and higher bond yields had weighed on valuations.
Records return, but volatility remains
The S&P 500 and Dow had already recovered to record territory earlier, leaving the Nasdaq as the last of the three major U.S. indexes to reclaim its peak. The latest move suggests investors are again willing to pay premium valuations for companies tied to AI and semiconductors.
Still, the rally remains sensitive to oil prices, interest-rate expectations and geopolitical developments. A reversal in energy markets or renewed concerns about AI spending could quickly test the strength of the rebound.
Sources: Reuters market reporting, September 22, 2026; Associated Press market coverage. Image credit: Nielsoncaetanosalmeron / Wikimedia Commons, CC BY 4.0.
