Stocks advanced on Wall Street Tuesday, buoyed by gains among technology companies benefiting from the ongoing artificial intelligence (AI) boom, even as oil prices climbed amid geopolitical tensions. The S&P 500 rose 0.9 percent, the Dow Jones Industrial Average expanded by 385 points (0.7 percent), and the Nasdaq Composite increased 1.3 percent.
Technology firms linked to AI, particularly those producing computer chips and data center components, led the market’s upward move. Micron Technology surged 12.2 percent, extending its rebound from a sharp decline last week, while Nvidia added 2 percent. These two companies were among the key contributors to the S&P 500’s overall gain. AI-related stocks had experienced volatility in recent sessions, with investors weighing whether ongoing investment in AI technology will yield the anticipated improvements in productivity and profitability.
The positive momentum on Wall Street persisted despite Brent crude oil briefly nearing $92 per barrel, its highest level in over five weeks. Oil prices rose due to ongoing tensions and attacks involving the United States and Iran, settling at $91.01 per barrel, a significant increase from under $72 earlier this month. The rise in energy costs raises concerns about a potential resurgence in inflation, which had recently shown signs of slowing. Higher inflation could compel central banks, including the Federal Reserve, to consider additional interest rate hikes, potentially dampening economic growth and pressuring asset prices.
Market participants also responded to several strong earnings reports from major U.S. corporations. Industrial conglomerate 3M shares climbed 7.3 percent after exceeding analysts’ revenue and profit estimates for the latest quarter, along with an optimistic profit forecast for 2026. Hasbro’s stock rallied 8.8 percent following the announcement that its Magic: The Gathering franchise generated more than $500 million in quarterly revenue for the first time and an upward revision to its annual sales outlook. General Motors gained 4.9 percent after reporting higher-than-expected revenue and profit, with CEO Mary Barra noting sustained robust demand in North America.
Not all earnings news was uniformly positive. Danaher experienced an 11 percent decline despite reporting earnings and revenue that beat expectations, as its forecast for underlying revenue growth in the summer fell short of analyst estimates. Homebuilder D.R. Horton slipped 0.9 percent even though it topped quarterly profit and revenue forecasts; its leadership highlighted ongoing challenges from housing affordability and cautious buyers. Rising mortgage rates—driven by higher Treasury yields—are increasing costs for potential homebuyers and may force the company to offer additional purchasing incentives, impacting future profits.
Bond markets reflected growing concerns around inflation and interest rates, with the yield on the 10-year Treasury note rising to 4.63 percent from 4.60 percent late Monday and a pre-Iran war level of 3.97 percent.
International equity markets also posted gains, with European indexes advancing modestly. The United Kingdom’s FTSE 100 increased 0.6 percent amid the first Cabinet meeting of Prime Minister Andy Burnham. In Asia, South Korea’s Kospi surged 3.6 percent, lifted by strong performances from Samsung Electronics and SK Hynix, two of the country’s dominant technology firms.