U.S. stocks pushed broadly higher on Tuesday, with the Nasdaq Composite extending its advance to a tenth straight session — its longest winning streak since 2021 — as a surprisingly cool Producer Price Index reading and further signs of de-escalation in the U.S.-Iran standoff gave investors a pair of reasons to buy. The soft inflation print lifted hopes that the Federal Reserve will retain flexibility to cut rates later this year, while a pullback in crude oil off last week’s highs took pressure off transports, consumer-facing names, and the broader risk trade. The S&P 500 has now fully erased the losses it absorbed when the Iran conflict first rattled markets.
The S&P 500 (SPI:SP500) rose 81.14 points, or 1.18%, to close at 6,967.38. The Nasdaq Composite led the major averages with a gain of 455.35 points, or 1.96%, finishing at 23,639.08 as megacap technology and AI-linked names roared higher. The Dow Jones Industrial Average added 317.74 points, or 0.66%, to settle at 48,535.99, held back somewhat by a disappointing earnings report from one of its financial components. Breadth was firmly positive, and the tone was helped by March producer prices, which rose just 0.5% against expectations of 1.1%, while the core reading climbed only 0.1% versus a forecast of 0.5% — a clear disinflationary signal that reassured investors still watching for second-round effects from the recent energy shock.
Notable Movers
Wells Fargo (WFC) dropped roughly 5% after first-quarter revenue of $21.4 billion and net interest income of $12.1 billion both came in below consensus. The miss set a cautious tone for the rest of the bank earnings cycle, with investors focused on how rising funding costs are squeezing lending margins.
Oracle (ORCL) added another 5% on the heels of Monday’s double-digit rally, as enthusiasm around the company’s expanding enterprise AI footprint continued to draw momentum buyers. The stock is now one of the top performers in the S&P 500 year-to-date.
American Airlines (AAL) jumped about 4% following reports of a potential merger proposal involving the carrier. Consolidation chatter in the airline space, combined with the step-down in oil prices, gave the whole group a lift.
Novo Nordisk (NVO) climbed roughly 3% after announcing a partnership with OpenAI aimed at applying artificial intelligence to drug discovery. The deal is the latest example of large pharma companies pairing with AI firms to speed up research timelines.
CarMax (KMX) plunged about 15% in one of the day’s worst performances, a sharp reversal that weighed on the broader used-vehicle and consumer-discretionary cohort despite the otherwise risk-on tone.
Looking Ahead
The week’s earnings calendar only gets busier from here, with more large banks, a handful of healthcare bellwethers, and several consumer names on deck. After Wells Fargo’s miss and JPMorgan’s guidance cut, investors will be watching closely for signs that net interest income pressure is a sector-wide issue rather than a company-specific stumble. On the macro front, Tuesday’s soft PPI data turns attention to upcoming consumer inflation readings and any commentary from Federal Reserve officials that could recalibrate rate-cut expectations. Oil remains the key swing factor: any renewed flare-up around the Strait of Hormuz could quickly reintroduce the geopolitical risk premium that markets just spent two weeks pricing out. For now, though, the path of least resistance remains higher, and the Nasdaq’s unbroken run is the clearest sign that risk appetite has returned.