The Nasdaq Composite rose by 1.04% on Tuesday, closing at 18,987.47, while the S&P 500 gained 0.4% to 5,916.98, bolstered by technology shares and positive momentum from Nvidia and Walmart. However, the Dow Jones Industrial Average fell 0.28% to 43,268.94, as broader market sentiment remained cautious amidst geopolitical tensions.
Chipmaker Nvidia, which is set to release its quarterly earnings on Wednesday, surged 4.9% to US$147.01, becoming the biggest driver for all three indices. Analysts attributed the gains to optimism surrounding Nvidia's role in the artificial intelligence sector, which has fuelled much of the year's stock market rally.
Walmart's shares hit a record high, rising 3% to US$86.60, after the retailer raised its annual sales and profit forecasts for the third consecutive time. Analysts highlighted the shift of customers toward higher-margin products as a key driver of Walmart's improved outlook.
Super Micro Computer saw the day's largest gain, soaring 31.2% after appointing BDO USA as its auditor and submitting a plan to Nasdaq to avoid delisting. Meanwhile, Netflix shares rose 2.9% to US$871.32, reaching a record high for a second day after announcing 108 million viewers watched a recent high-profile boxing event.
Markets faced early turbulence following Russian President Vladimir Putin's announcement to lower the threshold for a nuclear strike, which briefly weighed on investor confidence. However, reassurances from Russian Foreign Minister Sergei Lavrov that Moscow would strive to prevent a nuclear war helped markets recover.
Adding to investor optimism, Goldman Sachs projected that the S&P 500 could reach 6,500 by the end of 2025, supported by steady corporate earnings growth.
Despite the upbeat session for the Nasdaq and S&P 500, concerns linger over geopolitical tensions and potential changes in economic policy under US President-elect Donald Trump's administration.
Reuters
