Wall Street advanced modestly on Tuesday as technology shares rebounded ahead of Nvidia’s quarterly results, while easing oil prices and lower Treasury yields provided relief to equities amid a shifting macroeconomic backdrop.
Technology Rebound and Nvidia Earnings Focus
Major U.S. indexes closed higher on Tuesday, recovering from a recent selloff as investors braced for the financial disclosures from artificial intelligence heavyweight Nvidia. Megacap stocks climbed across the board, pushing the broader chips index (.SOX) ended 1.4% higher after a 2.7% fall on Monday.
Nvidia (NVDA.O) rose 2.2% and Meta (META.O) climbed almost 2%. Chipmaker Micron (MU.O) gained 2.5%, while Advanced Micro Devices (AMD.O) rose 4.9% after Raymond James upgraded the stock. Market participants are looking to upcoming figures to gauge the sustainability of the ongoing artificial intelligence boom and consumer demand. Nvidia’s results on Wednesday will be the next test for the earnings-driven rally.
“This is the classic problem of being the epicenter of the buildout — when you are the trade, execution stops being a catalyst and becomes a prerequisite,” said Mark Malek, chief investment officer at Siebert Financial.
Markets have grown wary of cyclical spending and the methods hyperscalers are using to fund their AI buildouts. Any signs of slowing growth could reignite concerns about stretched valuations and how long the AI boom can sustain them.
Bond Yields, Oil Prices, and Economic Indicators
Equities found support on Tuesday as longer-dated Treasury yields fell and oil prices dropped to a one-week low. Traders continued to weigh the implications of Treasury Secretary Scott Bessent’s decision to expand Treasury buybacks. The gains could ease investor concerns sparked by a recent bond market rout that lifted yields and pressured equities, and they could also help set the tone for September, a historically weaker month for stocks.
Market participants also digested fresh economic data showing that a survey indicated U.S. consumer confidence fell in August to its lowest in seven months. Still, money market participants are pricing in one 25-basis-point rate increase by the end of the year, according to LSEG data.
“There’s a lot of push and pull — in the bond market, geopolitics, oil,” said Joe Quinlan, head of market strategy for Merrill and Bank of America Private Bank.
“But we’re pretty constructive on the outlook (for the) next 12, 18 months on the U.S. economy; therefore, we are constructive on the markets as well.”
Market Performance Across Major Indices
At the closing bell, the Dow Jones Industrial Average (.DJI) rose 160.24 points, or 0.30%, to 53,577.40. The S&P 500 (.SPX) gained 24.38 points, or 0.32%, to 7,677.24, and the Nasdaq Composite (.IXIC) gained 171.11 points, or 0.66%, to 26,151.30.
Advancing issues outnumbered decliners by a 1.71-to-1 ratio on the NYSE. There were 190 new highs and 79 new lows on the NYSE. On the Nasdaq, 3,059 stocks rose and 1,740 fell as advancing issues outnumbered decliners by a 1.76-to-1 ratio. The S&P 500 posted 11 new 52-week highs and four new lows while the Nasdaq Composite recorded 105 new highs and 85 new lows.
Volume on U.S. exchanges was 14.32 billion shares, compared with the 16.4 billion average for the full session over the last 20 trading days.
Corporate Developments and Upcoming Policy Tests
Individual equities experienced sharp moves driven by corporate updates. Shares of biotechnology firm Moderna (MRNA.O) surged 14% after Barclays hiked its target price. The target price increase on Monday came days after Moderna and Merck (MRK.N) reported late-stage trial results for their jointly developed skin cancer vaccine. Dick’s Sporting Goods (DKS.N) plunged 30.7% after the retailer cut its annual forecasts, while sportswear company Nike (NKE.N) dipped. Target (TGT.N) shares fell 3.8% after the retailer apologized for and pulled a Halloween costume criticized for evoking blackface, renewing concerns about brand missteps just as its financial turnaround effort had begun to gain traction.
Market attention now shifts toward macroeconomic data releases and monetary policy signals. The Personal Consumption Expenditures report on Wednesday could provide greater clarity on price pressures after an in-line consumer inflation reading this month tempered bets on an imminent interest-rate hike by the U.S. Federal Reserve. Investors will watch Fed Chair Kevin Warsh’s Jackson Hole, Wyoming, speech on Friday for clues on the central bank’s approach to monetary policy.
