U.S. stocks closed higher on Tuesday as a rebound in technology and chipmaker shares, easing Treasury yields, and softer oil prices helped Wall Street shake off recent volatility. Investors positioned cautiously ahead of Nvidia’s closely watched earnings report on Wednesday, which many see as a key test of the artificial intelligence trade that has driven much of this year’s rally. All three major indexes finished in positive territory, with the tech-heavy Nasdaq leading the way.
What Moved Markets
The Dow Jones Industrial Average rose 160.01 points, or 0.30 percent, to close at 53,577.17. The S&P 500 added 24.42 points, or 0.32 percent, to finish at 7,677.28. The Nasdaq Composite outperformed, climbing 171.11 points, or 0.66 percent, to end at 26,151.30.
The gains came as chipmakers reclaimed ground lost in recent sessions, with traders looking ahead to Nvidia’s results after Wednesday’s close. Sentiment was also supported by a pullback in the 10-year Treasury yield and a decline in the market’s fear gauge, the VIX. On the economic front, investors digested August consumer confidence data along with June home price figures and July new home sales. Energy was a notable weak spot as oil prices slid, weighing on the sector, while technology and communications shares provided the bulk of the day’s leadership.
Notable Movers
Moderna (MRNA) surged about 14 percent after the company reported positive late-stage Phase 3 data for one of its cancer vaccine programs, reigniting investor interest in its pipeline beyond respiratory vaccines.
DICK’S Sporting Goods (DKS) was the day’s biggest decliner, plunging roughly 24 percent after its recently acquired Foot Locker business swung to a segment loss and the retailer sharply cut its full-year profit outlook. The company cited a “challenging” footwear market, though its core business held up with comparable sales up 4.9 percent.
Super Micro Computer (SMCI) jumped nearly 9 percent, riding the broad rebound in AI-linked hardware names ahead of Nvidia’s report.
Robinhood Markets (HOOD) advanced about 7 percent, helping lead a rally in financial and brokerage stocks as trading activity and risk appetite improved.
Jefferies Financial Group (JEF) gained roughly 5 percent amid the broader strength in the financial sector, adding to the day’s upbeat tone across Wall Street.
Looking Ahead
All eyes now turn to Nvidia (NVDA), which reports quarterly results after Wednesday’s close and could set the tone for the AI and semiconductor complex. CrowdStrike (CRWD) is also due to report. Beyond earnings, investors are bracing for a busy stretch of economic data, including the July reading on the Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation measure, later in the week, along with a second estimate of second-quarter GDP and July durable goods orders. With inflation data and a marquee earnings report on deck, retail investors should be prepared for the possibility of sharper swings in the days ahead.