On Tuesday, all three major US stock indexes advanced.
Oil prices pulled back as the market turned its attention to the upcoming Federal Reserve interest rate decision and the third-quarter earnings reports from Alphabet (GOOG.US, GOOGL.US) and Microsoft (MSFT.US).
US Stocks
At the close, the Dow Jones Industrial Average rose 15.99 points, or 0.03%, to 52,377.57; the S&P 500 gained 45.85 points, or 0.60%, to 7,722.62; and the Nasdaq Composite added 308.43 points, or 1.18%, to 26,477.81.
Boeing (BA.US) fell 10.7%, SK Hynix (SKHY.US) gained 1.9%, while Tesla Motors (TSLA.US) rose 4% to $407.46. Dell (DELL.US) climbed 7%. The Nasdaq Golden Dragon China Index slipped 0.11%.
European Stocks
Germany's DAX 30 rose 186.03 points, or 0.73%, to 25,596.87; the UK's FTSE 100 fell 79.41 points, or 0.74%, to 10,687.92; France's CAC 40 gained 39.82 points, or 0.51%, to 7,887.14; the Euro Stoxx 50 added 48.42 points, or 0.79%, to 6,164.65; Spain's IBEX 35 rose 131.99 points, or 0.69%, to 19,165.29; and Italy's FTSE MIB climbed 431.69 points, or 0.88%, to 49,618.50.
Forex
The US dollar index, which measures the greenback against six major currencies, rose 0.35% on the day to close at 102.319 in late foreign exchange trading.
At the close of New York trading, one euro bought $1.1135, down from $1.1183 the previous session; one pound fetched $1.3313, down from $1.3350; one dollar traded at 157.95 yen, up from 157.43 yen; one dollar exchanged for 0.8287 Swiss francs, up from 0.8273 francs; one dollar was worth 1.4052 Canadian dollars, up from 1.4020; and one dollar traded at 9.9489 Swedish kronor, down from 9.9510.
Cryptocurrencies
Bitcoin rose more than 1% to $80,806 as of press time, while Ethereum gained over 1.6% to $2,347.
Precious Metals
Spot gold advanced 1.1% to $4,060.74 an ounce, and spot silver rose 0.81% to $54.42 an ounce.
Crude Oil
Light crude futures for December delivery on the New York Mercantile Exchange fell $1.86, or 1.83%, to settle at $99.90 a barrel. London Brent crude futures for December delivery dropped $1.93, or 1.67%, to settle at $113.88 a barrel.
Macro News
US core capital goods orders increased in September while shipments surged. New orders for core manufactured capital goods rose in September, with shipments of related products climbing sharply, indicating that business equipment spending maintained strong growth momentum in the third quarter. The US Commerce Department's Census Bureau said Tuesday that orders for non-defense capital goods excluding aircraft rose 0.5% in September, following a 1.6% increase in August (unrevised). Economists had expected a 0.7% gain. Core capital goods shipments, which are used to calculate the equipment spending component of GDP, jumped 1.2% in September, up from a 0.6% increase in August. Driven by heavy investment in AI, business equipment spending has posted double-digit growth for two consecutive quarters, providing important support for manufacturing and the broader economy. Economists expect the preliminary third-quarter GDP reading due Thursday to show annualized growth exceeding 3.0%. However, investors are increasingly focused on rising costs of long-term projects, as returns on these projects remain uncertain. Over the past year, technology companies have raised enormous amounts of debt to fund AI-related spending.
Iran's Supreme Leader stressed the implementation of Iranian conditions to push for an end to the war. Iran's Revolutionary Guard said in a statement that the secretary of Iran's Supreme National Security Council, Major General Rezaei, met with Iran's Supreme Leader Mojtaba Khamenei. During the talks, they discussed maintaining national and regional security through management of the Strait of Hormuz, as well as consolidating bilateral relations with neighboring countries based on lasting mutual benefit. Khamenei said that the enemy's predicament is the result of Iran's adherence to national resistance. He emphasized that information should be released actively and promptly to sustain public participation in defending the country and the system, and that the rights and interests of the Iranian people and the resistance front should be safeguarded by implementing relevant conditions proposed by Iranian officials, in order to end the war and the situation of "neither war nor peace." Rezaei said the secretariat of the Supreme National Security Council is advancing Iran's strategic policies, including "establishing regional arrangements and order led by the region itself."
BlackRock: Energy shock will leave long-term scars on Europe's economy. BlackRock strategists said the sharp rise in energy prices triggered by the US-Iran conflict will have a lasting negative impact on Europe's economy, but may benefit energy infrastructure companies. The strategists noted that the buffers that absorbed the first round of the energy shock earlier this year are weakening, and Europe is particularly vulnerable. Higher energy prices have left Europe's GDP 0.5% lower than it would have been without the energy price increase. They said infrastructure capable of withstanding future energy shocks will increasingly be favored by the market, creating more investment opportunities. In addition, after rising bond yields dragged down stock prices, US and European utility stocks now also appear attractive.
Individual Stock News
Seagate's quarterly revenue grew 61%, but strong earnings failed to lift its stock price. Data storage device maker Seagate Technology (STX.US) reported first-quarter fiscal 2027 revenue above market expectations, up 61% year-over-year to $4.23 billion. The company's revenue guidance midpoint for the next quarter is $4.8 billion, 6.7% above the consensus estimate. Seagate's revenue has now grown for 10 consecutive quarters, indicating the current upcycle remains intact. Typical industry upcycles usually last 8 to 10 quarters. Management now expects next-quarter revenue to grow 69.9% year-over-year. Days inventory outstanding (DIO) is an important metric for chipmakers, reflecting a company's capital intensity and the cyclical nature of semiconductor supply and demand. This quarter, Seagate's DIO was 86 days, 5 days above its five-year average, indicating inventory has risen above historical levels. Following the earnings release, Seagate's shares fell more than 8% in after-hours trading at one point.
Oracle expands Nvidia chip partnership, brings in Google, Cerebras and other suppliers. Oracle (ORCL.US) announced it is expanding its cloud AI chip partnership with Nvidia (NVDA.O), planning to scale deployments of AI servers powered by Nvidia's next-generation Vera Rubin chips to several gigawatts, while also incorporating Google TPU chips and AI inference chips from SambaNova Systems and Cerebras Systems to diversify computing supply. Oracle also plans to use its own Acceleron networking chips in some Nvidia servers, replacing some of Nvidia's networking products. The company said different AI workloads have varying computing needs, and diversified chip supply helps customers choose suitable infrastructure based on performance, throughput and cost. Nvidia dominates the AI training chip market, but competition in the AI inference market is more diverse. Cerebras CEO Andrew Feldman said the partnership with Oracle will significantly expand its large customer base, and the company is entering other companies' data centers on a large scale. Oracle has not yet disclosed the financing arrangements for the chip purchases. The company said last month that customers are increasingly bearing chip procurement costs and maintained its fiscal 2027 capital expenditure target of approximately $90 billion to $95 billion.
US provides $5 billion in financing to Constellation to boost nuclear power generation. The Trump administration is considering providing up to $5 billion in financing to Constellation Energy (CEG.US) to upgrade and modernize the company's nuclear reactor facilities in Illinois, Maryland and Pennsylvania. The US Department of Energy said that with this conditional loan commitment, the projects are expected to add nearly 1.1 gigawatts (GW) of power supply, helping to strengthen the grid and reduce costs. US Energy Secretary Wright plans to announce the financing arrangement later Tuesday at a nuclear power plant in Illinois. The plant will supply power to Google. Wright said in a statement: "The Department of Energy is accelerating President Trump's 'American Nuclear Renaissance' plan and fully unlocking the potential of our existing nuclear facilities."
Boeing's third-quarter loss exceeded expectations, sending shares lower. After reporting third-quarter earnings, Boeing (BA.US) fell 10.69% to an 18-month low. Boeing's third-quarter loss exceeded expectations. Supply chain challenges and production delays in the commercial aircraft division offset the positive impact of improved margins in other business segments. Boeing CEO Kelly Ortberg said the target of 47 aircraft per month for the 737 model will not be achieved until next year. Boeing's third-quarter adjusted loss per share was 34 cents, wider than the analyst average estimate of 21 cents. Revenue rose 4% year-over-year to $24.19 billion, above the analyst estimate of $23.84 billion. Including today's decline, Boeing shares have fallen nearly 20% year-to-date.
Analyst Ratings
Wedbush: Maintains Intel (INTC.US) price target at $98.
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