Shares rose on Tuesday, supported by chipmakers, as investors watched the latest developments in the war with Iran to focus on corporate earnings updates.
The Dow Jones Industrial Average rose 385.38 points, or 0.74%, to 52,224.64. The S&P 500 advanced 0.89% to close at 7,509.20, and the Nasdaq Composite added 1.29% to end at 25,837.21. All three indices snapped a three-day losing streak.
Shares of 3M jumped more than 7% after the industrial giant’s second-quarter earnings beat expectations. In addition, General Motors reported a better second-quarter result, sending the stock up nearly 5%. The reporting period is off to a strong start. Of the roughly 66 S&P 500 firms that reported, nearly 88% beat net profit estimates, according to FactSet.
Among the big names due to report results later this week are Alphabet, IBM and Tesla.
“The next two weeks will be decisive for earnings, and not just for technology,” said Bret Kenwell, US investment analyst at eToro. “The broader message is already clear: Firms that fail to overcome Wall Street’s elevated ladder are punished.”
“That’s a sharp contrast to last quarter, when uncertainty lowered expectations and investors primarily sought reassurance that geopolitical disruptions hadn’t disrupted corporate America,” he added. “Today, after the market has reached record levels, good results are not always good enough.”
Semiconductors also gave a boost to the broader market, reports SEEbiz. The VanEck Semiconductor ETF (SMH) rose more than 4%. Marvell Technology jumped more than 6%, while Astera Labs added 3%. Micron Technology advanced 12% and Intel climbed 8%.
Tuesday followed a losing session in which traders considered an escalation in the war between the US and Iran.
