After starting the week with a negative session, U.S. markets rebounded on Tuesday, driven by falling oil prices, which helped alleviate concerns about a potential resurgence in inflation.
At the same time, Treasury yields paused their recent climb, offering further relief to investors.
Optimism surrounding the upcoming earnings season also buoyed traders, leading to renewed buying in tech stocks and key AI-linked companies. The S&P 500 gained 0.8%, the Nasdaq 100 rallied 1.3% on the back of semiconductor strength, while the Russell 2000 posted a more modest 0.4% rise.
The Magnificent Seven stocks—Microsoft Corp. (NYSE:MSFT), Apple Inc. (NASDAQ:AAPL), NVIDIA Corp. (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META) and Tesla, Inc. (NASDAQ:TSLA)—were all in the green, collectively adding around $250 billion in market capitalization and inching closer to a combined market value of $16 trillion.
Meanwhile, the CBOE Volatility Index (VIX), often referred to as Wall Street's "fear gauge," fell 6%, reversing a sharp 17% spike from Monday.
In the crypto space, Bitcoin (CRYPTO: BTC) rose 0.5%, trading at $62,479.
Tuesday's Performance In Major US Indices, ETFs
Major Indices | Price | 1-day %chg |
Nasdaq 100 | 20,051.16 | 1.3% |
S&P 500 | 5,742.69 | 0.8% |
Russell 2000 | 2,201.50 | 0.4% |
Dow Jones | 42,017.06 | 0.1% |
Updated at 12:50 p.m. ET
According to Benzinga Pro data:
The SPDR S&P 500 ETF Trust (NYSE:SPY) edged 0.7% higher to $571.68.
The SPDR Dow Jones Industrial Average (NYSE:DIA) inched 0.1% up to $420.10.
The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rose 1.2% to $487.35.
The iShares Russell 2000 ETF (NYSE:IWM) rose 0.3% to $218.07.
The Technology Select Sector SPDR Fund (NYSE:XLK) outperformed, up 1.6%. The Energy Select Sector SPDR Fund (NYSE:XLU) lagged, down 2.9%.
Tuesday's Stock Movers
Palo Alto Networks Inc. (NASDAQ:PANW) rallied 5% after Goldman Sachs raised its price target from $376 to $425.
Lower oil prices triggered rallies in cruise lines and airlines. Carnival Corp. (NYSE:CCL) rose 4.5%, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) gained 3.8%, American Airlines Group Inc. (NASDAQ:AAL) climbed 3.7%, and Delta Air Lines Inc. (NYSE:DAL) added 2.8%.
The energy and materials stocks that fell the most on Tuesday included Marathon Petroleum Corp. (NYSE:MPC), down 7.8%, Freeport McMoRan Inc. (NYSE:FCX), down 5.2%, and Valero Energy Corp. (NYSE:VLO), down 4.9%.
Docusign Inc. (NYSE:DOCU) rallied 8.3% after it was announced that it would join the S&P MidCap 400.
PepsiCo Inc. (NASDAQ:PEP) rose 0.6% in reaction to its quarterly earnings.
PepsiCo Adjusts 2024 Revenue Expectations After Mixed Q3 Performance And Global Challenges
Image created using artificial intelligence via Midjourney.
