Nasdaq Breaks All-Time High as AI Stocks Fuel Wall Street Rally

The New York Stock Exchange saw all three major U.S. stock indices close higher yesterday.

The Nasdaq rose 2.26% to break its all-time high, while the S&P 500 recovered the 7,700 level.

The surge in artificial intelligence and semiconductor stocks drove Wall Street's rally across the board, with communication services gaining 3% and technology rising 2%.

However, energy weakened by 2% due to falling oil prices, which dropped sharply after U.S. President Trump hinted at a possible meeting with the Iranian president during the upcoming UN General Assembly.

The stabilization of oil prices reduced inflationary pressures, pulling the 10-year U.S. Treasury yield below the psychological resistance level of 5%, and boosting growth stocks that had been hit hard by high interest rates.