S&P 500 notches fresh record, Dow adds nearly 500 points for first close above 49,000: Live updates

The S&P 500 and Dow Jones Industrial Average reached new heights on Tuesday as investors moved past the recent U.S. attack on Venezuela.

The broad market index rose 0.6% and posted a new all-time intraday record. The blue-chip Dow advanced about 485 points, or nearly 1%, and also hit an intraday high in the session. The Nasdaq Composite climbed 0.7%.

“Magnificent Seven” member Amazon lifted the three major averages, rising more than 3%. Other stocks related to artificial intelligence also supported the broader market, including Micron Technology and Palantir Technologies. Micron advanced more than 10%, while Palantir climbed more than 3%.

It’s only the third trading day of the new year, and semiconductor stocks have already been on a tear, with Micron being one of the leaders. With Tuesday’s gains, the stock has risen about 18% year to date. That’s coming off of a blockbuster year for the name, as it soared more than 240% in 2025.

“Tech kind of took a pause at the back end of the year, but I don’t think anyone questions that AI is a game changing technology,” said Ross Mayfield, investment strategist at Baird. “We’re seeing the chip stocks lead. That’s probably to be expected, but that cyclical rotation is still continuing.”

“You can have the AI trade and tech stocks work and the other cyclical components of the market work as well,” he continued. “That’s the kind of thing you might expect in an economy that is going to be running hot in 2026 with rate cuts, tons of fiscal stimulus and an AI enthusiasm that’s getting closer and closer to a fever pitch.”

The 30-stock benchmark closed at a record on Monday and notched an intraday high in the session as well after the U.S. captured and ousted Venezuelan leader Nicolas Maduro over the weekend, while President Donald Trump Trump encouraged big investments from U.S. oil companies.

Energy stocks rose broadly on Monday, with the S&P 500 energy sector posting its best one-day gain since July.

Mayfield pointed out that one factor behind why the developments between the U.S. and Venezuela aren’t impacting the market is because of the Latin American country’s role in the global economy — and the oil market more specifically.

“It’s minimal enough that you’re not going to see a Ukraine-Russia style response. A big reason for that sell-off was the huge spike in oil prices. We’re just not seeing that here and, if anything, I think the market is slightly pricing in the potential for more supply down the road if some of those sanctioned barrels come back onto the market,” he said.

“These geopolitical events when they do impact markets or the consumer picture tend to come for the oil market, and here it’s just not there,” the strategist added.