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US equity markets opened higher on Tuesday as the Nasdaq Composite hit an intraday record — its first since early June — amid renewed strength in technology names and growing hopes for diplomatic progress between Washington and Tehran. The Dow Jones Industrial Average rose 155.42 points, or 0.30%, to 52,204.25, the S&P 500 gained 14.39 points, or 0.19%, to 7,779.09, and the Nasdaq Composite added 89.57 points, or 0.33%, to 27,211.66. Traders also digested softer gold prices and a fresh large funding round in the AI-data sector.

"Supplying 'ample' reserves to the financial system with the current suite of tools to manage short-term interest rates 'has proven to be highly effective at delivering interest rate control and supporting the smooth functioning of core financial markets,'" New York Federal Reserve President John Williams said in prepared remarks, defending the Fed's rate-control toolkit while acknowledging it can be adjusted over time.

Market participants tracked several cross-currents. Gold eased as investors cemented expectations for persistently restrictive US monetary policy: spot gold slipped 0.3% to $4,332.34 per ounce by 9:25 a.m. ET, while US gold futures fell 0.3% to $4,370.40. Oil markets reacted to a diplomatic overture from Iran proposing to reopen the Strait of Hormuz within seven days if the US eases military pressure, a move that briefly softened crude prices and contributed to a wobble in the dollar. The US currency weakened 0.12% versus the yen to 157.15, while the euro held near $1.146 and sterling dipped to $1.3356.

Tech strength, AI activity and corporate moves

Technology stocks led the gains, with investors buoyed by continued momentum in AI-driven demand. Meta previously surged 11.3% on Monday as analysts pointed to strong early adoption of its Muse AI agent, and that sentiment helped sustain the Nasdaq's advance. Cybersecurity vendor Palo Alto Networks announced it will launch a new AI-powered cybersecurity service using advanced models from Anthropic and OpenAI to help enterprises identify vulnerabilities more quickly, highlighting how AI is reshaping both opportunity and risk across corporate IT environments.

Funding activity in the AI data space also underscored investor appetite. Data startup Snorkel AI told Reuters it raised $350 million in fresh funding at a $3.5 billion valuation. The round was led by Insight Partners and S32, with participation from existing backers Addition, Greylock and Wells Fargo. CEO Alex Ratner said the deal reflected booming demand from frontier AI labs for "increasingly complex training data and simulated environments." The new valuation is nearly three times the roughly $1.3 billion valuation achieved when Snorkel raised $100 million in May 2025.

Context and near-term outlook

Traders are calibrating risk around several upcoming events. Fed officials including Vice Chair Philip Jefferson, New York Fed President John Williams and Richmond Fed President Thomas Barkin were expected to speak later in the day, providing additional color on whether policymakers see upside inflation pressure from AI-driven demand or oil-price shocks. Futures markets showed modestly higher positioning: at 7:12 a.m. ET, Dow futures rose about 111 points, while S&P and Nasdaq futures were little changed.

• Equities: Dow 52,204.25; S&P 7,779.09; Nasdaq 27,211.66 (intraday record for Nasdaq)
• Gold: Spot $4,332.34/oz; US futures $4,370.40
• Snorkel AI funding: $350 million round at $3.5 billion valuation (led by Insight Partners, S32)

Looking ahead, investors will monitor diplomatic developments at the United Nations General Assembly and upcoming Fed commentary for signs that could tip the balance between risk appetite and policy-driven caution. For now, AI-related momentum and corporate technology initiatives are keeping the market's growth-sensitive segments in focus even as macro risks linger.