US stocks-AI-linked earnings, Mideast deal hopes send Dow, S&P 500 to record highs

The Dow Jones Industrial Average .DJI rose 998.40 points, or 1.88%, to 54,175.70, the S&P 500 .SPX gained 144.39 points, or 1.90%, to 7,744.97 and the Nasdaq Composite .IXIC gained 697.17 points, or 2.69%, to 26,610.62.

The Dow secured its first closing high since July 6 on Monday, while the S&P 500 on Tuesday notched its first intraday record since July 2.

Chip stocks, also seen as beneficiaries of AI-spending, surged. The Philadelphia Semiconductor index .SOX shot up nearly 7% and was on track for its fourth straight daily gain after tumbling 20.6% in July.

The S&P 500 tech sector gained 4.5% as the best performing of the 11 major S&P sectors.

Results from corporate earnings this quarter have mostly been robust. Of the 304 companies in the S&P 500 that have reported second-quarter earnings as of Friday, 85.2% have beaten estimates, versus the long-term average of 67.5%, according to LSEG data, with every major S&P sector showing profit growth.