The S&P 500 and Nasdaq closed at record highs on Tuesday, lifted by Intel and other AI-related stocks, as firms and investors focused on strong quarterly earnings under the US-Iran ceasefire. Washington said on Tuesday that its ceasefire with Iran remains intact, allaying concerns that efforts by the two sides to establish control over the Strait of Hormuz would escalate hostilities.

Investors focused on AI-related companies as the Philadelphia SE Semiconductor Index hit a record high.

Chip designer AMD advanced after its quarterly report bell, with analysts expecting a 33% rise in revenue.

S&P 500 companies are on track to post overall earnings growth of 28% year-over-year in the first quarter, the strongest quarterly profit growth since 2021, according to Tajinder ⁠Dhillon, head of earnings research at LSEG.

Wall Street’s AI heavyweights are responsible for that optimism.

“The markets are following the fundamentals. Earnings are coming in very strongly, and the expectation is that they will continue to move through the rest of the year,” said Tom Heinlin, investment strategist at US Bank Wealth Management in Minneapolis.

“Business spending remains strong, whether it’s on AI or other productivity tools, and consumers continue to spend,” Heinlin said.

According to preliminary data, the S&P 500 gained 58.72 points, or 0.82%, to close at 7,259.47 points, while the Nasdaq Composite gained 259.06 points, or 1.03%, to close at 25,326.51. The Dow Jones Industrial Average rose 354.85 points, or 0.73%, to 49,296.75.

Brent crude futures fell but still traded at $110 a barrel.

Data on Tuesday showed US job openings fell to 6.866 million in March, slightly above the 6.835 million estimate. That reinforced the view that labor market resilience could give the central bank room to keep interest rates high for longer.

The Institute for Supply Management’s non-manufacturing purchasing managers’ index came in at 53.6 for April, narrowly missing estimates of 53.7, according to economists polled by Reuters. Grain trader Archer-Daniels-Midland rose after reporting better-than-expected first-quarter profit on higher margins. DuPont rallied after the industrial materials maker lifted its annual profit forecast. Shares of Pinterest rose after the image-sharing platform forecast second-quarter revenue that beat analysts’ estimates.