Stock Market Mixed as Nasdaq Hits Intraday Record; Crypto Rally Eases After Regulatory Clarity
U.S. stock markets showed mixed performance Tuesday with the Nasdaq hitting a fresh intraday high while the S&P 500 remained flat and Dow dropped slightly. Cryptocurrency markets jumped after the SEC cleared paths for tokenized stock trading and the CFTC proposed crypto rules.
Market Performance Today
The Nasdaq Composite rose to a fresh all-time intraday high on Tuesday, while the S&P 500 was relatively unchanged as traders continued to keep an eye on developments between the U.S. and Iran. The tech-heavy Nasdaq was last up 0.4%, supported by a 4% gain in shares of Sandisk following a bullish call from Rosenblatt. The S&P 500 traded around the flatline, while the Dow Jones Industrial Average shed 213 points, or 0.4%.
Crypto and Regulatory Tailwinds
Digital assets surged on positive regulatory developments. Crypto jumped to start the week after moves by key financial regulators last week eased investor uncertainty while short covering and broader risk appetite added fuel to the rally. The price of bitcoin advanced 4% to $84,671.80, according to Coin Metrics. Earlier, it rose as high as $85,229.44, its highest level since January. The relief rally comes after the Securities and Exchange Commission on Thursday opened a temporary path for platforms to let people trade tokenized stocks and the Commodity Futures Trading Commission proposed a set of crypto market rules to the White House for review.
AI Sector and Magnificent Seven
The AI trade continued to power equity gains. A resurgence in investor appetite for Big Tech lifted all the Magnificent Seven stocks into the green, but the gains were largely driven by the 11% surge in Meta shares. Although concerns about capital expenditures for artificial intelligence remain, part of the appeal may be that tech has gotten cheaper lately. Forward earnings expectations remain strong.
Geopolitical Tensions in Focus
European stock markets turned positive, with the benchmark Stoxx 600 index last up 0.2%, following reports in Japanese media that Iran has offered to reopen the Strait of Hormuz within 7 days if the U.S. takes steps toward de-escalation. Oil prices and geopolitical developments continue to shape market sentiment as investors assess economic resilience.