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Wall Street’s Nasdaq hits all-time high as AI frenzy gathers pace

Al Jazeera · 2026-09-23

AI SUMMARY

• What happened: The Nasdaq Composite index reached an all-time high, increasing by 0.45% this week, driven by optimism in the technology sector despite concerns over AI safety and geopolitical tensions related to the U.S. military involvement in Iran. • Why it matters: This milestone indicates strong investor confidence in technology stocks, particularly in AI advancements, which are seen as key to future profitability, even amidst ongoing geopolitical uncertainties. • What to watch next: Investors will be monitoring developments in AI technology, particularly products like Meta's Muse, as well as the potential resolution of the U.S.-Iran conflict and its impact on market stability and energy prices.

**Wall Street’s Nasdaq Hits All-Time High as AI Frenzy Gathers Pace**

*New York City, September 23, 2026* — The Nasdaq Composite index reached an all-time high this week, reflecting a growing optimism in the technology sector despite ongoing concerns regarding artificial intelligence (AI) safety, inflated tech valuations, and geopolitical tensions related to the United States' military actions in Iran.

On Tuesday, the Nasdaq Composite, which is heavily weighted with major tech companies such as Nvidia, Apple, and Microsoft, rose by 0.45%, marking a total gain of over 17% for the year. The Nasdaq 100, a narrower index that tracks 100 of the largest non-financial companies on the Nasdaq stock exchange, surged by 0.82%.

Leading the gains were Monolithic Power Systems, a Florida-based manufacturer of power circuits, and Canadian e-commerce giant Shopify, which saw their stock prices jump by 8.1% and 7.1%, respectively. Micron Technology, a key player in the memory chip industry, also experienced a significant increase, with shares rising by 5%. Nvidia, the world's most valuable company, gained 0.7%, while Apple saw a modest increase of 0.2%. However, Meta Platforms, which had previously surged 11.4% on Monday due to excitement over its new AI assistant, Muse, experienced a slight decline of 0.63%.

The broader stock market, as measured by the S&P 500, closed nearly flat, indicating a mixed sentiment among investors. Despite this, the enthusiasm surrounding AI technology appears to be a driving force behind the Nasdaq's record performance. Analysts are noting that the recent developments in AI, particularly products like Muse, are reigniting investor interest in the sector.

Jay Goldberg, a senior analyst at Seaport Research Partners in San Francisco, commented on the renewed focus on AI investments. "We have been searching for a clear consumer use case to justify the AI spend, and many see Muse as just that product," he stated. Goldberg believes that while Muse is a step in the right direction, there are likely to be even more compelling products on the horizon that will further excite investors.

In the backdrop of these market movements, geopolitical factors continue to play a role in shaping investor sentiment. The ongoing conflict in Iran, which has seen the U.S. military involved for nearly seven months, has raised concerns about energy prices and market stability. However, recent diplomatic discussions between U.S. officials and their Iranian counterparts have provided a glimmer of hope for a resolution, prompting a shift in focus back to the potential profitability of AI technologies.

As the Nasdaq continues to soar, major Asian stock markets also responded positively, with Japan's Nikkei 225 and South Korea's Kospi both opening higher. In contrast, Hong Kong's Hang Seng Index experienced a decline, falling by more than 0.7% during morning trading.

Oil prices remained stable on Tuesday, following a drop of over 3% the previous day due to improving oil flows from the Gulf region and the potential for renewed diplomatic efforts between the U.S. and Iran. As of 01:00 GMT, futures for Brent crude were trading at $99.18 a barrel.

In summary, the Nasdaq's all-time high reflects a complex interplay of technological advancements, investor sentiment, and geopolitical developments. As the market continues to react to these factors, the focus on AI and its potential to drive future profits remains a pivotal theme for investors and analysts alike.

Source: Al Jazeera
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