US equities advanced on Tuesday, with the Dow Jones Industrial Average reaching a new record as strength in artificial intelligence stocks outweighed losses in the energy sector, which pulled back after sharp gains a day earlier.
By early afternoon in New York, the S&P 500 was up 0.6%, while the Nasdaq 100 also gained 0.6%. The Dow climbed 1%, or 496 points, touching an all-time high of 49,476.79.
Technology shares led the advance after developments unveiled at the Consumer Electronics Show. NVIDIA CEO Jensen Huang announced that the company’s next-generation AI platform, Vera Rubin, has entered full production. He also revealed Alpamayo, an open-source AI model designed to accelerate progress in autonomous vehicle technology.
According to Morgan Stanley analyst Joseph Moore, Huang devoted more attention than expected to the Rubin platform at an event traditionally focused on consumer products. NVIDIA described demand for its AI solutions as “skyrocketing,” further boosting sentiment across the sector.
Rising enthusiasm around AI also fueled sharp gains in memory and storage stocks, extending last year’s rally. Micron Technology surged 8%, while SanDisk jumped 23% and Western Digital advanced 16%. The tech-led rebound helped counter weakness in energy shares, which eased after rallying following the US capture of Venezuelan leader Nicolas Maduro.
Attention is now turning to commentary from policymakers ahead of key economic data. Several officials from the Federal Reserve are scheduled to speak this week, offering clues on the outlook for interest rates ahead of the Jan. 30–31 policy meeting. Fed Governor Stephen Miran said the central bank may need to cut rates by more than one percentage point in 2026, arguing that current policy remains restrictive and is weighing on economic growth.
Markets are also preparing for Friday’s US December jobs report, a critical release after recent data suggested cooling momentum in the labor market. Economists at Bank of America said nonfarm payrolls are likely to rise to around 70,000, above consensus estimates, and noted that the report could play a key role in shaping expectations for rate cuts later in the year.
