US STOCKS-Chip stocks jump on AI optimism; Dow hits record high

(Updates with afternoon trading) Cooling systems firms fall after Nvidia CEO’s comments Memory and storage chipmakers hit record highs S&P 500 +0.62%, Nasdaq +0.61%, Dow +1.02% By Purvi Agarwal and Noel Randewich Jan 6 (Reuters) - Wall Street rose on Tuesday, as chip stocks surged on renewed AI optimism, Moderna rallied and the Dow Jones Industrial Average hit a record high. Moderna (MRNA.O) jumped 10% after BofA Global Research raised its price target on the drugmaker, while the S&P 500 healthcare index (.SPXHC) rose 1.9%. Memory and storage technology stocks rallied after Nvidia CEO Jensen Huang, speaking at the Consumer Electronics Show in Las Vegas, gave details about upcoming AI processors that include a new layer of storage technology. SanDisk (SNDK.O) jumped 23%, Western Digital (WDC.O) rallied 16%, Seagate Technology gained 13% and Micron Technology (MU.O) rose almost 8%, with all four stocks hitting record highs. The PHLX chip index (.SOX) jumped 2.7%, bringing its gain in the first three trading sessions of 2026 to 7.9%. “I think we’re going to have a very strong earnings season for Big Tech, and all those capex estimates that we hear about are going to be revised higher again,” said Jed Ellerbroek, portfolio manager at Argent Capital in St. Louis. Investors are looking forward to reliable economic data as the effects of a record 43-day federal government shutdown wear off, and upcoming releases include the Job Openings and Labor Turnover Survey (JOLTS) on Wednesday and Friday’s jobs report for December. Weaker-than-expected employment data could strengthen the case for central bank interest rate cuts. The S&P 500 was up 0.62% at 6,944.55 points. The Nasdaq gained 0.61% to 23,537.96 points, while the Dow Jones Industrial Average was up 1.02% at 49,476.54 points, approaching the historic 50,000 mark. Data on Tuesday showed S&P Global’s final composite PMI slipped to 52.7 in December from 53.0 in the prior month, while the services PMI eased to 52.5 from 52.9. Markets also parsed comments from Richmond Federal Reserve President Tom Barkin, who reiterated the U.S. central bank’s careful take on further cuts, in contrast to Governor Stephen Miran’s call for aggressive cuts in a Fox Business interview. Investors brushed aside fears of broader geopolitical fallout after U.S. forces captured Venezuelan President Nicolas Maduro over the weekend, betting the move could pave the way for U.S. firms to gain access to Venezuela’s oil reserves. Oil stocks dipped after robust gains in the prior session, with giants Exxon Mobil (XOM.N) and Chevron (CVX.N) down 2.3% and 4.5%, respectively. Comments from Nvidia’s Huang about the efficiency of the company’s new chips raised concerns about demand for data center cooling systems. Shares of Johnson Controls (JCI.N) fell 6.1%, while Trane Technologies (TT.N) dropped 3.5%. AIG (AIG.N) shares dropped 7.7% after the insurance giant said CEO Peter Zaffino would step down. Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) by a 2.5-to-one ratio. The S&P 500 posted 58 new highs and 8 new lows; the Nasdaq recorded 112 new highs and 39 new lows.