U.S. stock indexes hit new record highs as Nvidia surges

All three major U.S. stock indexes once again finished at record highs on Tuesday, driven by a rise in Nvidia’s shares after the company announced plans to develop artificial intelligence supercomputers for the U.S. Department of Energy. 

Investor sentiment was also boosted by optimism surrounding upcoming earnings reports from major tech firms.

Nvidia CEO Jensen Huang revealed that the company will construct seven of these advanced supercomputers for the U.S. government

Nvidia’s shares surged 5% by the market’s close, adding more than $230 billion to its valuation and bringing the company close to achieving a $5 trillion market capitalization.

Meanwhile, 

Microsoft’s stock (MSFT.O) rose 2% after the tech giant finalized an agreement enabling OpenAI to transition into a public benefit corporation, granting Microsoft a 27% ownership stake in the ChatGPT developer.

“Strong momentum and solid earnings are driving the market upward,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “Corporate results have been impressive,” he added. “Now, the focus shifts to major tech companies.”

At the same time, investors were assessing developments on the trade front. According to "The Wall Street Journal, U.S. President Donald Trump and Chinese President Xi Jinping are expected to discuss a potential trade deal aimed at lowering U.S. tariffs on Chinese products in return for China’s pledge to limit the export of fentanyl precursor chemicals

.