By Yasin Ebrahim

Investing.com – The S&P 500 delivered its biggest one-day rally since March on Tuesday,  as a record run in Apple and strong gains in Intel triggered a rally in tech to help the broader market set its sights on record highs once again.   

It rose by 2% and is now just 1% off its all-time highs. The gained 1.4% or 492 points while the climbed to 3%.

Technology soared 4% after Apple (NASDAQ) rose to an all-time high. This was because Morgan Stanley raised its price target for the tech giant from $164 to $200.

Apple’s foray into new product categories including augmented reality and virtual reality, which will bolster its valuation, aren’t yet priced into its shares, according to Morgan Stanley.

The chip stocks also enjoyed a strong showing, supported by an increase in Intel (NASDAQ) and detailed plans of the chipmaker to make Mobileye, its self driving car business public, in 2022. According to some reports, the self-driving automobile business could be worth around $50 billion. However, Wall Street may not agree with this estimate.

“We do struggle somewhat to understand why Mobileye (F:) should command a $50B valuation,” Wedbush said in a note.

While the move is a positive for Intel, the transaction isn’t expected to change the company’s broader trajectory as its “struggles to maintain share in its core operations,” Wedbush added.

After a 20% rise in tech stocks, sentiment on technology was also boosted by the meltdown in cloud-related stock prices. MongoDB (NASDAQ): The database indicated that the gap was narrower than anticipated

Amazon (NASDAQ:), meanwhile, held the bulk of its gains as the e-commerce behemoth said it had identified the cause of problems with its cloud services that caused outages across the internet, including Disney Plus, and Netflix.

Investors cheered Omicron’s positive news and made gains in the Cyclicals market, which included financials and energy.

The new variant is “almost certainly not more severe than the Delta [variant],” Dr. Anthony Fauci, President Joe Biden’s chief medical adviser said Tuesday.

GlaxoSmithKline, NYSE:), announced another positive news that monoclonal antibodies were effective in treating the Omicron variant which is highly mutated. Pfizer Bloomberg reported that (NYSE:) was up by 1% following data from South Africa showing the vaccine had partial protection against the Omicron variant.  

Energy followed oil prices higher as positive updates on Omicron and expectations that supply of Iranian crude isn’t likely “anytime soon” amid considerable differences on nuclear talks between the U.S. and Iran, Commerzbank said in a note.

Tesla (NASDAQ) rose more than 4 percent after UBS raised its target price for the stock from $725 to $1,000. 

Crypto-related stocks include Coinbase Global The following bitcoin’s.  

According to Bloomberg, Mitch McConnell, Republican Senate Minority leader, said that he had reached an agreement with Chuck Schumer, Democratic Senate Majority Leader, on the debt limit. This would allow Democrats to increase the limit by a procedural vote.