The S&P 500 index reached a record high, boosted by gains in semiconductor and memory chip stocks. Market sentiment broadly improved as a ceasefire between the US and Iran appeared to hold.

The S&P 500 rose 0.8%, with Micron Technology, Intel, and other chipmakers advancing more than 11%, pushing the benchmark past the high set last Friday.

All 11 major sectors closed higher, led by materials and technology stocks.

The Nasdaq 100 Index climbed 1.3%, also setting a new record.

As earnings season continued, Advanced Micro Devices, the world's second-largest computer processor maker, provided a strong outlook for the current quarter. Its shares closed up 4% on Tuesday.

Among materials stocks, DuPont de Nemours Inc led gains after the chemical giant raised its full-year performance guidance. The stock rose 8.4%, marking its largest increase since November of last year.

On the economic data front, the US ISM Services Index slowed to a five-month low due to moderating order growth and persistently high input costs.

Adam Crisafulli, founder of Vital Knowledge, noted, "The sharp decline in new orders coupled with still-high inflation makes this data slightly negative for the economy."

US job openings changed little in March, while hiring picked up, indicating continued signs of stabilization in the labor market.

Market attention will now shift to Friday's non-farm payrolls report and its potential implications for the Federal Reserve's interest rate path.

At the close, the S&P 500 was up 0.8% at 7,259.22 points. The Dow Jones Industrial Average rose 0.7% to 49,298.25 points. The Nasdaq Composite Index gained 1% to 25,326.13 points. The Nasdaq 100 Index advanced 1.3% to 28,015.06 points. The Russell 2000 Index increased 1.8% to 2,845.004 points.