Wall Street opened higher on Tuesday, with the Dow Jones Industrial Average climbing 227 points, as Treasury yields pulled back from levels not seen in over two decades and oil prices declined. The S&P 500 advanced 0.49%, while the Nasdaq Composite added 0.57%, supported by strength in technology shares.
The S&P 500 touched a fresh intraday record of 7,817.13 points, surpassing its previous all-time high of 7,816.7 set in August. The Nasdaq had closed at a record on Monday, buoyed by continued investor enthusiasm for artificial intelligence-related companies.
Technology stocks lead gains
Technology shares were among the primary drivers of Tuesday's advance. Nvidia rose 0.9%, pushing its market value closer to $6 trillion. Advanced Micro Devices gained about 0.12% after CEO Lisa Su indicated the company plans to substantially increase chip supply in 2027 to meet robust AI demand. Broadcom also traded higher.
Most of the so-called Magnificent Seven stocks, including Meta, Tesla, and Amazon, posted gains. The technology sector has helped US equities outperform global markets over the past six months, despite elevated energy prices and bond market volatility.
Investors are now turning their attention to the third-quarter earnings season, which kicks off next week with results from major US banks. According to LSEG data, analysts expect S&P 500 earnings to grow more than 30% year over year, with AI-related companies projected to account for a significant portion of that growth.
Treasury yields retreat from multi-year highs
The 10-year Treasury yield fell about 3 basis points to 5.29%, while the 30-year yield declined more than 2 basis points to 5.66%. Both had reached levels not seen since 2002 on Monday, with the 30-year touching 5.702% and the 10-year climbing to a multi-year peak.
A weaker-than-expected US payrolls report last week reduced expectations for another Federal Reserve rate increase this month. According to the CME Group's FedWatch tool, traders were pricing in a 78% probability that the Fed would hold rates steady at its October meeting. However, a December hike remained largely priced in.
Investors are awaiting the minutes from the Fed's September meeting, due Wednesday, which could offer additional insight into policymakers' decision to raise rates last month. At least four Fed officials, including New York Fed President John Williams, were scheduled to speak publicly on Tuesday.
Oil prices ease on supply relief
Oil prices also declined, providing another boost to equities. Brent crude fell about 2.3% to around $98 a barrel, while West Texas Intermediate futures dropped roughly 1.49% to near $88. The decline followed an increase in Middle Eastern crude exports and the G7's decision to release emergency stockpiles, easing concerns about near-term supply.
The S&P 500 energy sector ETF fell about 1% in trading. Meanwhile, Option Care Health jumped 32.8% after McKesson and Clayton Dubilier & Rice agreed to acquire the company in a transaction valued at about $5.8 billion, including debt. Constellation Energy rose 12.7% after Google entered a 3,590-megawatt power agreement with the company.
This article is for informational purposes only and does not constitute financial advice.
