US stocks turned a shaky start into a broad rally on Tuesday, with the Dow Jones Industrial Average climbing roughly 1% — more than 500 points — while the S&P 500 and Nasdaq Composite both recovered from early losses to finish higher.
It was the kind of session traders call an "everything rally." About nine of the eleven S&P 500 sectors ended in the green, led by healthcare with a gain of more than 2%. Real estate, financials, utilities and consumer discretionary each rose over 1%, and the small-cap Russell 2000 jumped 1.9% — on pace for its best day in about four months, according to Dow Jones Market Data.
What moved
3M and UnitedHealth paced the Dow's advance, each gaining several percent, while Boeing and Apple lagged with drops of close to 1% each. Eli Lilly broke out to fresh strength and crypto-linked Strategy surged more than 6%. Early weakness centered on AI infrastructure names: CoreWeave slid more than 4% in premarket trading and Nebius fell nearly 5% before the broader market pulled them along.
Oil, yields and earnings in focus
Crude prices whipsawed. Brent briefly topped $110 a barrel after Houthi rebels claimed strikes on Saudi energy, airport and military targets, and Iran said two oil tankers caught fire after striking naval mines in the Strait of Hormuz. Prices then flipped lower — West Texas Intermediate fell about 1.5% to just above $102 — on reports that mediators had floated a proposal to revive peace talks, with Qatar publicly backing a diplomatic solution.
The 10-year Treasury yield slipped to about 5.1%, and bitcoin traded near $82,500.
Earnings are the next big test. Netflix reports third-quarter results after Tuesday's closing bell, alongside 3M, General Motors, GE Aerospace, Capital One, United Airlines and others. Goldman Sachs' prime desk also reported that hedge funds cut technology exposure last week at the fastest pace in at least a decade, a sign of how crowded — and nervous — the AI trade has become.
Monday set the stage: the Nasdaq rose 1.11% to 26,430.89 and the S&P 500 added 0.42% to 7,691.07, while the Dow slipped 0.06% to 51,970.20. Chip stocks led that rebound, with the Philadelphia Semiconductor Index snapping an eight-session losing streak after analyst upgrades for CoreWeave and Intel.
This article is for information only and is not financial advice.
Sources: Barron's, Economic Times, Investors.com, Coinpaper.
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