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U.S. stocks rose broadly Tuesday as chip shares staged a strong recovery and investors positioned for a wave of major technology earnings.
The Dow Jones Industrial Average gained 385.38 points, or 0.74%, to 52224.64. The S&P 500 rose 65.92 points, or 0.89%, to 7509.20, while the Nasdaq Composite gained 329.13 points, or 1.29%, to 25837.21. According to preliminary data, there were 1,501 advancing issues and 1,232 declining issues on the NYSE.
The PHLX Semiconductor Index climbed 5.2%, leading a broad market recovery. The rebound came as investors looked past a new Chinese artificial intelligence model unveiled this week and ahead to tech earnings due Wednesday.
Goldman Sachs warned that benchmark Brent crude could exceed $120 a barrel in the fourth quarter and average $100 in 2027 if the Strait of Hormuz remains closed. Brent rose 2.01% to $91.01 a barrel Tuesday, its highest level since mid-June, after more fighting in the Middle East overnight.
3M rose about 7.3% after the materials maker raised its guidance and posted an 11% jump in second-quarter profit, driven by strong performance in its industrial, safety and data-center businesses. General Motors rose about 4.9% after raising its profit forecast despite a drop in U.S. cars sold, as the automaker cashed in on demand for bigger, pricier trucks and SUVs. Hasbro jumped about 8.8% after posting results for its “Magic: The Gathering” card game, with sales up 34% in the first half. Utz Brands surged nearly 89% after agreeing to be taken private by Germany’s Intersnack Group.
Charles Schwab’s second-quarter profit rose 32% to $2.8 billion, as a trading boom lifted the brokerage’s results. Daily average trading volumes hit a record 11.9 million, up nearly 60% from a year earlier. CEO Rick Wurster said the elevated trading activity reflected a structural shift in how Americans engage with markets.
Novo Nordisk filed a lawsuit against Eli Lilly, accusing it of using outdated studies to mislead consumers about the comparative weight-loss effectiveness of its GLP-1 drugs Mounjaro and Zepbound against Novo Nordisk’s Ozempic and Wegovy. Yum Brands, parent of Taco Bell, extended its losing streak to seven days as the cyclospora lettuce outbreak continued to weigh on the stock.
JPMorgan Chase Chief Executive Officer Jamie Dimon said in a podcast interview he wouldn’t buy long-dated Treasurys or stocks at current prices, citing high corporate profit levels and elevated inflation. “When I look at AI itself, the amount of money being spent is huge. Will it in total pay off? Probably, just like the internet did. Will it pay off the way you expect on the timetable you expect? Definitely not,” Dimon said.
U.S. Trade Representative Jamieson Greer meanwhile signaled the Trump administration was preparing a new wave of tariffs on roughly 60 countries over alleged forced-labor violations.
Trade tensions with Canada also remained in focus, as Prime Minister Mark Carney said he and President Trump agreed to accelerate talks in an effort to avoid a new 50% U.S. tariff on certain Canadian goods set to go into effect on Aug. 19. The proposed levy would apply to $20 billion of Canadian exports to the U.S., while Carney said Ottawa is seeking a comprehensive deal that would also address existing tariffs on motor vehicles, metals and forest products.
Yields on U.S. Treasury bonds rose, with the 10-year up 0.030 percentage point to 4.628%. The dollar rose by 0.23 percentage point. The euro was last seen at $1.14. Gold added 1.52% to $4071.10 per troy ounce.
Looking ahead, Alphabet, Tesla and IBM report earnings Wednesday. The European Central Bank announces its interest-rate decision Thursday, when Intel and American Airlines also report quarterly results. American Express and Verizon are due out on Friday.
Write to Anvee Bhutani at [email protected]