Technology stocks in the United States reached new record highs on Tuesday, propelled by strong gains in the semiconductor sector. The Nasdaq Composite index rose 1 percent in early afternoon trading in New York, marking a fresh peak, while the S&P 500 advanced 0.8 percent. The Philadelphia Semiconductor index surged as much as 4.8 percent to an all-time high, continuing its significant rally of roughly 45 percent since late March.

Market observers cited robust capital expenditure related to artificial intelligence as a driving force behind the earnings momentum in the semiconductor industry. Tom Stevenson, investment director at Fidelity International, noted that while the sector benefits from a focused earnings boom, uncertainties remain amid the ongoing conflict in the Middle East, particularly around the Strait of Hormuz, which could influence broader market trends.

Across Europe, equity markets showed mixed results. The pan-European Stoxx 600 index gained 0.7 percent, with Paris’s Cac 40 rising 1.1 percent and Frankfurt’s Xetra Dax up 1.7 percent. In contrast, London’s FTSE 100 declined 1.4 percent, marking its steepest one-day drop since late March. The FTSE’s retreat followed its closure on Monday for a public holiday, a day when many European benchmarks experienced losses.

Government bond markets reflected the heightened risk environment as the cost of long-term UK borrowing surged to its highest level since 1998. Yields on 30-year UK gilts climbed by as much as 14 basis points to 5.79 percent before settling at 5.74 percent, driven by investor selling amid concerns over sustained inflationary pressure exacerbated by rising oil prices. Yields on 10-year UK gilts rose 9 basis points to 5.06 percent. In contrast, the 10-year US Treasury yield decreased 3 basis points to 4.41 percent, supported by increased investor demand, while German Bund yields eased 1 basis point to 3.07 percent.

Oil prices retreated following Monday’s surge, with Brent crude falling 3.5 percent to $110.45 per barrel and West Texas Intermediate dropping 4.1 percent to $102.09 per barrel. The recent volatility has been attributed in part to mounting geopolitical tensions and concerns about demand amid broader economic uncertainties.

In currency markets, the British pound strengthened 0.2 percent against the US dollar, reaching $1.3560, while the euro edged up 0.1 percent to $1.1702. The US dollar rose marginally by 0.1 percent against a basket of international currencies.