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Wall Street stocks moved higher on Tuesday as technology shares extended their recovery and lower oil prices supported market sentiment. Investors also tracked easing attacks between Iran and Israel ahead of US inflation data and SpaceX’s planned market debut.
Major US indexes advanced in early trading. The Dow Jones Industrial Average gained 0.76%, while the S&P 500 rose 0.73%. The NASDAQ Composite also added 0.76%.
Small-cap stocks recorded stronger gains, with the Russell 2000 climbing 1.8%. Advancing shares outnumbered declining stocks by more than three to one on the New York Stock Exchange.
Chipmakers led the technology recovery after last week’s sharp sell-off. Intel, Broadcom, and Micron Technology gained between 1.5% and 3.2%. Meanwhile, the Philadelphia Semiconductor Index rose 2.3%.
Technology shares faced heavy selling last week after Broadcom released a weaker forecast. That update raised concerns about high valuations across AI-linked companies.
Ken Mahoney, chief executive of Mahoney Asset Management, said, “The reason why I think the market’s holding on pretty well is that analysts are still not finished raising their guidance.” Still, investors remain unsure whether earnings growth can support current technology valuations.
Applied Digital shares jumped almost 11% after the company signed a $5.2 billion AI data center lease. The agreement involves a US-based hyperscaler and supports additional computing infrastructure.
Other large technology companies also advanced. Alphabet and Meta gained about 2% each, helping the communication services sector rise 1.4%.
Consumer discretionary stocks led the S&P 500 sectors with a 1.6% increase. Overall, eight of the index’s 11 main sectors traded higher during the session.
Elsewhere, Nuvalent shares surged almost 40% after GSK agreed to buy the cancer drug developer for $10.6 billion. The offer valued Nuvalent at about $124 per share, a 40% premium to its previous closing price.
Oil prices fell more than 2% after Iran and Israel halted attacks against each other following a US appeal. Brent crude traded near $92 per barrel after briefly rising above $98 on Monday.
Nevertheless, doubts remain over whether the pause will develop into a lasting agreement. The Strait of Hormuz has not fully reopened, although US officials reported an increase in ship traffic.
Lower crude prices supported airline stocks, which have faced rising fuel costs during the conflict. United Airlines gained 2.7%, while Delta Air Lines advanced 2.6%.
Additionally, the benchmark 10-year US Treasury yield slipped to 4.53% from 4.56% on Monday. It remains above the 3.97% level recorded before the Iran conflict began.
Investors are awaiting May consumer price data on Wednesday and wholesale inflation figures on Thursday. Markets will examine whether higher energy costs have pushed inflation upward.
A stronger-than-expected jobs report on Friday increased expectations for tighter monetary policy. CME FedWatch data placed the chance of a 25-basis-point December rate increase at about 43%.
SpaceX’s planned Friday market debut is also drawing attention. Elon Musk’s company aims to raise $75 billion at a valuation near $1.75 trillion.
The deal would become the largest initial public offering on record. Still, questions remain over investor demand following last week’s technology sell-off and concerns about high-growth stock valuations.
Wall Street is also monitoring possible public listings from OpenAI and Anthropic. Both artificial intelligence companies have reportedly taken early steps toward entering public markets.
Also Read: Stock Market Update: Nifty 50, Sensex Expected to Open on a Cautious Note Amid Weak Global Cues
