At the close, the Dow Jones industrial index was traded up 0.5 percent, the broad S&P 500 index climbed 0.6 percent, and Nasdaq's technology-heavy composite index increased 0.8 percent.
Nvidia increased by 2.8 percent – and surpassed Microsoft as the highest valued listed company on Tuesday.
Other chip manufacturers followed with Broadcom, up 3.3 percent, and Micron Technology, plus 4.2 percent.
Tuesday's movements follow statistics that showed an unexpectedly strong labor market in April. This supports, according to Bloomberg, the US Federal Reserve's (Fed) that the country's labor market is in good condition.
On Tuesday, the collaborative organization OECD also lowered its forecast for global growth to 2.9 percent in 2025 and 2026 – the lowest growth since the pandemic year 2020. The Trump administration's trade war and economic uncertainty are braking trade and investments more than expected.
