U.S. markets opened at fresh all-time highs on Tuesday, but beneath the headline rally lies a diverging market. The S&P 500 gained 0.66% to $750.59 and the Nasdaq surged 1.78% to $730.28 — both at record levels — while the Dow Jones slipped 0.17% to $505.25. The gap between tech and everything else is widening.

Tech Leads the Charge

The momentum is concentrated in technology. Alphabet (GOOGL) rose 1.54% to $388.88, Tesla (TSLA) added 1.78% to $433.59, and Broadcom (AVGO) climbed 1.9% to $422.01. On the other side, Nvidia (NVDA) dipped 0.2% to $214.86, and Apple (AAPL) and Microsoft (MSFT) edged lower after the massive rally of the past month.

Over the last 30 days, the Nasdaq has surged 9.94% while the S&P 500 gained 4.95% — a nearly 5-point spread that tells the story: this market is running on tech and AI, and everything else is playing catch-up.

Small Caps Signal Risk-On

The Russell 2000 jumped 1.89% to $290.51, a strong rally in small-cap stocks that signals rising risk appetite. When investors move beyond the mega-cap names into smaller companies, it typically reflects confidence in the broader economic outlook.

Oil Falls Despite Middle East Tensions

One of the morning's more intriguing stories is in commodities. The USO oil fund dropped 2.78% to $137 despite escalating tensions in the Middle East. Iran vowed "swift, decisive revenge" after an overnight U.S. port attack, but Secretary of State Rubio signaled optimism about a peace deal "within days." The market appears to be pricing diplomacy over escalation.

Gold (GLD) held steady around $414, and long-term Treasuries (TLT) edged up 0.5% — muted moves that suggest neither panic nor complacency.

Oklo Jumps on DOE Plutonium Deal

Oklo (OKLO) surged 4.28% to $68.70 after the U.S. Department of Energy signed a deal to convert surplus plutonium into nuclear fuel for the company's reactors. The deal potentially solves two problems at once: what to do with weapons-grade plutonium stockpiles and how to fuel next-generation nuclear power.

The Big Picture

The market is charging higher with strong momentum, but the sector divergence is a note of caution. Oil's decline despite geopolitical headlines is a reminder that markets don't trade news headlines — they trade probabilities. The week ahead will determine whether this is a continuation of the tech-driven rally or the setup for a correction.