Newscasts - Chip stocks jump on AI optimism; Dow ends at record high

Johnson Controls International

06/01/2026 23:36

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Source: 'Reuters - Business videos'

Description: Wall Street ended higher on Tuesday, as chip stocks surged on renewed AI optimism, Moderna rallied and the Dow Jones Industrial Average reached a record high. Lisa Bernhard has more.

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Video Transcript:

Wall Street ended higher on Tuesday, with the Dow gaining about 1% to hit another record high, and the S&P 500 and NASDAQ both climbing more than 0.6%. Investors brushed aside fears of broader geopolitical fallout after US forces captured Venezuelan President Nicolas Maduro over the weekend. Rohit Chopra, Portfolio Manager at Lazard Asset Management, said investor focus is already turning to what happens next.

And now the markets are starting to digest, what does normalcy look like in a country that was in a much more untenable situation? I think that's where we are seeing a firmness. Venezuelan bonds continue to be resilient, up more than 20% over the last couple of days. And now markets are starting to digest some of those second-order developments. What does the oil production outlook look like? What type of investment will come in? What is the type of regime that we're likely to see? But I do think the markets are taking more of a full approach to this weekend's developments.

Still, oil stocks dipped after robust gains in the prior session, with giants ExxonMobil and Chevron losing about 3.5% and 4.5%, respectively. Renewed AI optimism powered the indexes, with several chip stocks rallying. NVIDIA CEO Jensen Huang, speaking at the Consumer Electronics Show in Las Vegas, gave details about upcoming AI processors that include a new layer of storage technology. Sandisk surged more than 27%, Western Digital jumped 17%, Seagate Technology gained 14%, and Micron Technology rose 10%, with all four stocks hitting record highs. But Huang's comments also raised concerns about demand for data center cooling systems. Shares of Johnson Controls slid more than 6%, while Trane Technologies dropped 2.5%. Among other movers, shares of Moderna jumped almost 11% after BofA Global Research raised its price target on the drugmaker.