Wall Street extended its rally on Tuesday as a spate of economic data appeared to support the case for the U.S. Federal Reserve to implement its third and final rate cut of the year in December, while softness in the tech sector limited the Nasdaq's gains.
Market Snapshot
The Dow Jones Industrial Average rose 664.18 points, or 1.43%, to 47,112.45, the S&P 500 gained 60.77 points, or 0.91%, to 6,765.89 and the Nasdaq Composite gained 153.59 points, or 0.67%, to 23,025.59.
Market Movers
Nvidia fell 2.6% after a report said Meta Platforms was in talks to buy artificial-intelligence chips from Alphabet's Google. While Google's tensor processing units aren't as flexible as Nvidia's graphics processing units, they are cheaper to develop and less power-intensive. Rival GPU maker Advanced Micro Devices also took a hit, falling 4.2%.
Alphabet, meanwhile, gained 1.5%. The stock has surged more than 70% in 2025, putting it on pace for its best year since 2009. The stock was nearing a valuation of $4 trillion on Tuesday. Beyond the excitement over Google's TPUs, the company also received rave reviews for its new large-language model, Gemini 3.
Broadcom, which helps design Google's TPUs, pared back earlier losses and rose 1.9% on Tuesday. Shares closed up 11% on Monday.
Alibaba's American depositary receipts declined 2.3%, even after the online retail giant reported better-than expected adjusted net income and revenue for its fiscal second quarter. AI has been a significant tailwind for shares lately, with excitement building about Alibaba's relaunched AI chatbot, Qwen.
U.S.-listed shares of NIO reversed earlier gains and fell 4.4%. The Chinese electric-car maker said it had delivered 87,071 vehicles over the third quarter, up 41% from a year ago, and reported a narrower-than-expected adjusted quarterly loss.
Crypto stocks were falling as Bitcoin struggled to mount a sustained comeback following a brutal selloff. Bitcoin treasury company Strategy slid 3.8%, while digital-asset exchange Coinbase Global fell 0.7%.
Analog Devices advanced 5.3%. The chip maker posted fiscal fourth-quarter earnings and revenue that narrowly topped analysts' expectations, and issued first-quarter guidance that came in ahead of Wall Street forecasts.
Novo Nordisk's American depositary receipts rose 4.7%. The drugmaker said its experimental drug amycretin helped patients with Type 2 diabetes lose up to 14.5% of their body weight over 36 weeks. The drug also significantly reduced blood sugar levels, the company said.
Fluence Energy was 6.1% higher after the energy storage company provided an upbeat revenue outlook for fiscal 2026. Fluence said it sees revenue in the range of $3.2 billion to $3.6 billion, above the $3.21 billion analysts were anticipating at the midpoint.
Symbotic surged 39%. The robotics company posted a narrower-than-expected loss in its fourth quarter. Revenue came in at $618.5 million, up from $564.6 million in the prior year and above the $604 million analysts were expecting.
Sandisk fell 2.9%. The memory chip maker, which spun off from Western Digital in February, will join the S&P 500 before the start of trading on Nov. 28, replacing advertising company Interpublic Group. With a market value of close to $30 billion, Sandisk was the largest company by far in the S&P Small Cap 600 index. Shares of Interpublic Group declined 2.5%.
Kohl's soared 43% after the retailer swung to a surprise profit in the fiscal third quarter and said it expects a smaller drop in fiscal-year sales than previously anticipated. On Monday, Kohl's said it had appointed interim CEO Michael Bender to the role permanently.
Abercrombie & Fitch also gained 38%. The apparel retailer posted adjusted earnings of $2.36 a share for its fiscal third quarter, surpassing analysts' calls for $2.17, while $1.29 billion in net sales were in line with expectations. Comparable-store sales rose 3% from the prior year.
Keysight Technologies jumped 10% after the electronic equipment manufacturer reported better-than-expected profit and revenue for its fiscal fourth quarter. Revenue for the company's communications solutions group grew 11% in the quarter.
Zoom Communications climbed 9.9% after the videoconferencing app developer beat analysts' estimates for third-quarter adjusted earnings, thanks to a jump in the number of customers paying $100,000 or more.
Market News
US Budget Deficit Hits $284 Billion in October; Report Impacted by Shutdown
The U.S. government posted a higher $284 billion deficit for October in a report delayed and impacted by the recent federal government shutdown and reflecting record tariff revenues offset by a shift of some November benefit payments into last month's data, the Treasury Department said on Tuesday.
The budget results for the first month of the 2026 fiscal year were delayed by a 43-day shutdown of many federal agencies, which caused delays of some payments, such as for salaries of government employees, a Treasury official said.
US Retail Sales Growth Cools; Consumer Sentiment Sags Amid Job Market Worries
U.S. retail sales increased less than expected in September, suggesting consumer fatigue amid higher prices because of tariffs, though the moderation did not dampen economists' expectations for solid economic growth in the third quarter.
The sales slowdown reported by the Commerce Department on Tuesday followed a long stretch of gains and marked a weak handoff to the fourth quarter. Economists said a sluggish labor market, characterized by an unemployment rate at a four-year high, was making consumers more selective about purchases.
US Slashes 36% off Medicare Spending on 15 High-Priced Medicines
The U.S. Medicare health plan said on Tuesday that newly negotiated prices for 15 of its costliest drugs will save 36% on those medications compared with recent annual spending, or about $8.5 billion in net covered prescription costs.
The prices go into effect in 2027, including a monthly price of $274 for Novo Nordisk's popular GLP-1 drug semaglutide, sold as Wegovy for weight loss and Ozempic for diabetes.
