Wall Street's main indexes closed higher on Tuesday, with the tech-focused Nasdaq Composite leading gains, rising 1.3%. The S&P 500 climbed 0.9% and the Dow Jones Industrial Average added 0.7%. This rebound followed three consecutive sessions of losses and was largely driven by a significant recovery in semiconductor and AI stocks. The Philadelphia SE Semiconductor Index rallied 5.2%, with companies like Micron Technology jumping 12.2%, SanDisk up 14.3%, and Western Digital rising 12.5%.
Oil prices continued to climb, with Brent crude briefly approaching $92 per barrel for the first time in over five weeks, settling at $91.01. West Texas Intermediate futures were up 2.1% at $85 a barrel. This increase was attributed to ongoing geopolitical tensions, specifically attacks between the United States and Iran. Rising oil prices pose a threat of reaccelerating inflation, which could prompt central banks, including the Federal Reserve, to raise interest rates, potentially slowing economies and impacting stock prices. The yield on the 10-year Treasury also rose to 4.63%.
Despite the pressure from rising oil prices and geopolitical concerns, stronger-than-expected corporate earnings reports helped boost market sentiment. 3M surged 7.3% after exceeding analysts' expectations for profit and revenue and raising its 2026 profit forecast. Hasbro rallied 8.8% after its Magic: The Gathering game topped $500 million in revenue for a quarter and the company raised its annual revenue forecast. General Motors also cruised 4.9% higher based on strong profit and revenue, and robust demand in North America. In contrast, Danaher slid 11% due to a weaker-than-expected forecast for summer revenue growth, despite topping profit and revenue expectations. Investors are keenly focused on upcoming earnings reports from major tech companies like Alphabet and Tesla.
