The S&P 500 and Dow Jones Industrial Average rose as corporate earnings optimism countered a global sell-off in chip stocks.
The S&P 500 and Dow Jones Industrial Average rose on Tuesday as investors weighed a deluge of strong quarterly results from major corporations. While the Dow Jones Industrial Average climbed 1.2%, the S&P 500 rose nearly 0.4%, bolstered by gains in companies like Coca-Cola and Sherwin-Williams. These gains were largely offset by a significant sell-off in the computer chip sector, where stocks like Micron Technology and Advanced Micro Devices tumbled due to concerns over the sustainability of artificial intelligence growth and increasing competition from China. Oil prices also retreated from recent highs as the administration announced a halt in active fighting between the United States and Iran, with President Trump saying the two sides are in diplomatic talks. This cooling of oil prices helped ease Treasury yields. Meanwhile, the Federal Reserve prepares for a policy meeting this week, with traders currently favoring a steady interest rate, though a hike remains a possibility. Consumer confidence also saw a slight decline in July, reflecting a softening perception of the labor market.