Major U.S. stock indices closed higher on Tuesday, with both the Dow Jones Industrial Average and the S&P 500 reaching new all-time highs, while precious metals extended their gains. The White House stated that President Trump and his team are exploring options related to acquiring Greenland and that utilizing the U.S. military to advance this goal "has always been a viable option." The White House also indicated that President Trump hopes to secure Greenland during his term.
At market close, the Dow Jones Industrial Average rose by 484.9 points, or 0.99%, to 49,462.08; the Nasdaq Composite gained 151.35 points, or 0.65%, finishing at 23,547.17; and the S&P 500 increased by 42.77 points, or 0.62%, settling at 6,944.82. Tesla (TSLA) fell 4.1%, while Pinduoduo (PDD) rose nearly 3%, and Qualcomm (QCOM) climbed over 3%. The Nasdaq Golden Dragon China Index closed down 0.78%, with Hesai Group (HSAI) surging more than 10%, and Alibaba (BABA) declining over 3%.
In European markets, Germany's DAX 30 index added 30.43 points, or 0.12%, to close at 24,886.75; Britain's FTSE 100 jumped 116.93 points, or 1.17%, to 10,121.50; and France's CAC 40 rose 25.93 points, or 0.32%, ending at 8,237.43. The Euro Stoxx 50 increased by 10.16 points, or 0.17%, to 5,933.85; Spain's IBEX 35 gained 29.15 points, or 0.17%, to 17,643.55; while Italy's FTSE MIB dropped 91.82 points, or 0.20%, to 45,755.50.
The U.S. Dollar Index, which measures the dollar against a basket of six major currencies, advanced 0.32% to settle at 98.579. In late New York trading, one euro traded at $1.1690, down from $1.1727 the previous session; one pound was at $1.3502, lower than $1.3543. One dollar bought 156.63 Japanese yen, up from 156.23; it was also higher against the Swiss franc at 0.7954, and against the Canadian dollar at 1.3805. The dollar strengthened to 9.1966 Swedish krona.
Bitcoin briefly fell to around $91,200 before paring losses; at the time of writing, it was down 0.74%, trading back above $93,000. Ethereum rose over 1.6% to $3,275.9.
Spot gold surged more than 1% to $4,494.76 per ounce, while spot silver jumped over 4.9% to $81.276.
WTI crude for February delivery fell 2%, settling at $57.13 a barrel, and Brent crude for March delivery dropped 1.7%, settling at $60.70 a barrel. Traders assessed progress on an agreement to end the conflict in Ukraine involving Russia. An end to the conflict could be bearish for the oil market, which is already facing a supply glut. The Trump administration and Ukraine's allies made progress at a Tuesday meeting of the so-called "voluntary coalition" on providing Kyiv with the long-sought security guarantees.
The U.S. Supreme Court has set Friday as the date for a ruling on tariffs. Media reports indicate this date marks the first opportunity for a ruling on President Trump's global tariff policy. The court's announcement comes as justices return from a four-week recess. The court does not preview which rulings are ready, only stating that opinions may be issued when the justices convene at 10:00 AM Washington time. Given the expedited handling of the case, a ruling is highly likely. An adverse ruling for Trump would weaken his signature economic policy and represent a major legal setback since his return to the White House. The case centers on tariffs imposed on April 2, which levied duties of 10% to 50% on most imports, with additional tariffs on Canada and Mexico cited as a response to fentanyl smuggling.
President Trump urged Republicans to reverse their political fortunes ahead of the November midterm elections, warning that he would face impeachment for a third time if Democrats regain control of Congress. "You have to win the midterms," Trump said. "They will find a reason to impeach me. I will be impeached." Trump had predicted an "epic" Republican victory to reverse the trend, but polls showing public dissatisfaction with his leadership and the economy pose an ominous sign for Republican control of Congress.
Goldman Sachs warned that nearly all U.S. power grids will face electricity shortages by 2030 due to surging demand from data centers, potentially causing the U.S. to fall behind in the AI race. "We are not adding enough capacity," said Samantha Dart, Co-Head of Global Commodities Research at Goldman Sachs. Grids typically target at least 15% reserve capacity—the buffer between peak demand and available generation. Dart noted that some grids are already below this level, and the gap is expected to widen over the next decade.
AMD CEO Lisa Su stated that artificial intelligence is not slowing the company's hiring but is changing the profile of candidates they seek. "I don't think we are actually hiring less," Su said. "Frankly, our company is growing very fast, so we are actually hiring a lot of people, but we are hiring a different type of talent. We are hiring people who are forward-looking about AI." Su added, "I think AI is augmenting our capabilities. It is not replacing people; it is actually making us more productive, allowing us to launch more products simultaneously."
Chevron has booked a small fleet of tankers destined for Venezuela, positioning itself as the sole exporter of the country's oil following the capture of President Maduro by U.S. forces. Data shows the U.S. oil giant has chartered at least 11 tankers scheduled to arrive this month at Venezuelan ports under government control. This preliminary figure is up from 9 vessels in December and marks the highest level since October. The Houston-based company operates in Venezuela under a license from the U.S. Treasury Department and is the only Western firm permitted to extract and export Venezuelan crude under U.S. sanctions.
Shares of cooling system manufacturers plummeted on Tuesday after comments from Nvidia's CEO sparked concerns about demand for data center cooling products. Johnson Controls, which makes water-cooling equipment, saw its shares plunge as much as 11%, their largest intraday drop since 2022. Modine Manufacturing fell up to 21%, while Carrier Global and Trane Technologies also declined. Nvidia CEO Jensen Huang, speaking at the CES event in Las Vegas, suggested that racks equipped with Nvidia's next-generation Rubin chips could be cooled using water temperatures that don't require chillers. Barclays analyst Julian Mitchell noted, "Given Nvidia's central role in the entire AI ecosystem, their comments should not be taken lightly, even if they seem quite dramatic at first glance."
JPMorgan lowered its price target on Costco (COST) to $1,000 from $1,027. Conversely, TD Cowen raised its price target on Estée Lauder (EL) to $115 from $110.
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