Wall Street stocks have posted modest gains as investors watched developments in US-Iran peace negotiations and cheered the unveiling of a new computer chip that promises to bring artificial intelligence to personal computing.
Tech shares rose 2.5 per cent, boosting the Nasdaq and the S&P 500 to the latest in a series of record closing highs, while the blue-chip Dow closed nominally higher, its gains limited by weakness in all but two of the 11 major S&P 500 sectors.
US President Donald Trump said talks with Iran continue.
Earlier, an Iranian news agency announced Iran was halting indirect negotiations with the US after a new round of strikes threatened to derail diplomatic efforts to end the war, now in its fourth month.
The intensification of hostilities sent crude prices jumping, along with worries over the extent to which a protracted war could accelerate inflation.
Nvidia rose 6.3 per cent after the company unveiled a new chip that puts AI capabilities directly into personal computers.
In economic news, US factory activity expanded in May for the fifth consecutive month as goods-makers navigate tariff and geopolitical crosswinds.
Investors will turn to Friday's jobs report ahead of Kevin Warsh's debut policy meeting as chairman of the US Federal Reserve this month, amid fears of rising inflation linked to the Iran war that could upend the stock market rally.
The Dow Jones Industrial Average rose 46.42 points, or 0.09 per cent, to 51,078.88, the S&P 500 gained 19.90 points, or 0.26 per cent, to 7,599.96 and the Nasdaq Composite gained 114.19 points, or 0.42 per cent, to 27,086.81.
Of the 11 major sectors in the S&P 500, only technology and energy enjoyed gains, while utilities suffered the largest percentage drop.
Software stocks rebounded from the heavy selling earlier this year on AI disruption fears.
There were 519 new highs and 144 new lows on the NYSE.
On the Nasdaq, 2,436 stocks rose and 2,403 fell as advancing issues outnumbered decliners by a 1.01-to-1 ratio.
The S&P 500 posted 29 new 52-week highs and 18 new lows while the Nasdaq Composite recorded 122 new highs and 77 new lows.
Volume on US exchanges was 21.80 billion shares compared with the 19.71 billion average for the full session over the last 20 trading days.
