The S&P 500 ended higher on Tuesday, lifted by a rally in Tesla as investors bet on positive results from U.S.-China trade talks aimed at defusing a tariff dispute that has roiled global markets this year.
Market Snapshot
The S&P 500 climbed 0.55% to end the session at 6,038.81 points, less than 2% away from its record close of 6,144.15 points. The Nasdaq gained 0.63% to 19,714.99 points, while the Dow Jones Industrial Average rose 0.25% to 42,866.87 points.
Market Movers
Shares of Intel advanced 7.8% to $22.08 on what proved to be an all-around positive trading session for the stock market. This was the stock's third consecutive day of gains. Intel Corp. closed 40.6% below its 52-week high of $37.16, which the company achieved on July 17th.
Shares of Tesla gained 5.7%. The electric-vehicle maker ended Monday up 4.6% after spending most of the trading day in the red. President Donald Trump told reporters he wished Tesla CEO Elon Musk "well" after the two had a very public falling out last week. Trump also said he wasn't going to sell the red Tesla he bought in March, when the two men were on better terms. The president called Starlink, which is made by Elon Musk's SpaceX, a good service and said he had no plans to drop it from use at the White House.
Videogame retailer GameStop reported a decline in first-quarter revenue on Tuesday as customers increasingly opted for digital downloads over purchases at its brick-and-mortar stores, sending its shares down 3% in after-hours trading.
Apple stock was up 0.6% on Tuesday. Shares slumped 1.2% on Monday following the first day of Apple's annual Worldwide Developers Conference at which the company touted artificial-intelligence features it already has implemented but said an upgraded Siri voice assistant wasn't yet available. Apple needs "more time to meet our high quality bar, and we look forward to sharing more about it in the coming year," said Craig Federighi, senior vice president of software engineering.
U.S.-listed shares of $Taiwan Semiconductor Manufacturing(TSM)$ rose 2.6% after the world's largest contract chip maker reported revenue of roughly $10.7 billion in May, a 40% jump from a year earlier. However, revenue for the month was down 8.3% sequentially.
J.M. Smucker slumped 16% after the maker of Jif peanut butter and Folger's coffee reported fiscal fourth-quarter adjusted earnings that beat analysts' estimates but issued a forecast for fiscal 2026 that was below expectations. Smucker said it expects adjusted profit of $8.50 to $9.50 a share in the current fiscal year, below consensus of $10.27
McDonald's declined 1.4% to $300.41 after receiving its third downgrade from Wall Street in three days. Redburn Atlantic's Chris Luyckx downgraded McDonald's to Sell from Buy and reduced the price target on the stock to $260 from $319. The analyst sees GLP-1 weight-loss drugs suppressing customer appetites and presenting an underappreciated longer-term threat for the fast-food chain. Analysts at Morgan Stanley downgraded McDonald's to Equal Weight from Overweight on Monday.
Casey's General Stores reported fiscal fourth-quarter profit of $2.63 a share, easily topping Wall Street consensus of $1.92, as revenue rose to nearly $4 billion from $3.6 billion a year earlier. Inside same-store sales rose 1.7% from a year earlier and the convenience-store chain said it expects fiscal 2026 inside same-store sales to increase 2% to 5%. The stock surged 12%.
Insmed skyrocketed 29% after the biopharmaceutical company announced positive top-line results in a Phase 2 trial that evaluated the efficacy and safety of treprostinil palmitil inhalation powder, taken once daily by patients with pulmonary arterial hypertension.
Calavo Growers sank 16% after the avocado distributor reported fiscal second-quarter adjusted earnings of 40 cents a share, well below analysts' estimates of 53 cents. Net sales of $190.5 million, up 3.3% from a year earlier, also was below consensus of $192.8 million.
Market News
GM to invest $4 billion in three US facilities as it ramps up gas-powered vehicles
General Motors said on Tuesday it is planning to invest about $4 billion over the next two years at three U.S. facilities in Michigan, Kansas, and Tennessee as it moves to boost production of gas-powered vehicles amid slowing electric vehicle demand.
The company said it will begin production of gas-powered full-size SUVs and light-duty pickup trucks at its Orion Assembly plant in Orion Township, Michigan, in early 2027. Orion Assembly was previously slated to build electric trucks starting next year.
Bessent Emerging as a Contender to Succeed Fed’s Powell
A growing chorus of advisers inside and outside the Trump administration are pushing another name to serve as the next chair of the Federal Reserve: Treasury Secretary Scott Bessent.
President Donald Trump said Friday he would name a successor “very soon” to replace Jerome Powell, whose term as Fed chair ends in May 2026. The small list of candidates under consideration has included Kevin Warsh, a former Fed official whom Trump interviewed for the Treasury secretary role in November, according to people familiar with the matter.
