A fresh wave of artificial intelligence investment enthusiasm has driven the Nasdaq 100 Index to its first closing record since June, while traders simultaneously dumped stocks seen as vulnerable to AI disruption. The tech-heavy Nasdaq 100 rose 0.8% to close at a new high of 30,732 points. Tuesday marked the index's fifth consecutive session of gains, its longest winning streak since April, bringing its year-to-date advance to 22%.

Shopify climbed 7.1%, ranking among the best performers in the Nasdaq 100, following the company's announcement of a partnership with Meta on the Muse AI product. Financial stocks posted the steepest declines as concerns grew that AI would erode profit margins and fee income for brokerage firms. Allstate and Charles Schwab fell 5.5% and 6.1%, respectively.

The S&P 500 closed essentially flat, while the Dow Jones Industrial Average, which carries a roughly 27% weighting in financial stocks, slipped 0.4%. "The tech trade and enthusiasm for tech stocks have returned, and that money has to come from somewhere," said Mark Hackett, chief strategist at Nationwide Funds Group. Financial shares are serving as the "funding source" for the tech rally.

Refiner stocks also declined as US lawmakers weigh a potential ban on diesel exports in response to elevated diesel prices. At the close, the S&P 500 was roughly unchanged at 7,764.64 points; the Dow Jones Industrial Average fell 0.4% to 51,863.69 points; the Nasdaq Composite advanced 0.5% to 27,244.28 points; the Nasdaq 100 rose 0.8% to 30,732.4 points; and the Russell 2000 gained 0.5% to 2,889.919 points.