Stocks climbed on Tuesday, supported by chipmakers, as investors looked through the latest developments in the Iran war to focus on corporate earnings updates.
The Dow Jones Industrial Average rose 214 points, or 0.4%, while the S&P 500 and the Nasdaq Composite advanced 0.6% and 1%, respectively.
3M shares jumped more than 7% after the industrial giant’s second-quarter earnings came in better than expected. Additionally, General Motors reported a beat on the top and bottom lines for the second quarter. The reporting period is off to a strong start. Of the roughly 54 S&P 500 names that have reported, 87% have topped bottom-line estimates, per FactSet.
Big names set to report later this week include Alphabet, IBM and Tesla.
As companies issue their latest earnings results this week, traders will be hunting for details on artificial intelligence spending. They’ll also be listening on earnings calls for confirmation that executives aren’t becoming more cautious about the second half of the year.
Semiconductors also gave a boost to the broader market in early trading. The VanEck Semiconductor ETF (SMH) gained more than 3%. Marvell Technology and Micron Technology each climbed roughly 6% before the bell, along with Astera Labs. Intel advanced more than 5%.
Tuesday’s move higher comes after a losing session in which traders weighed escalations in the U.S.-Iran war.
Central Command has carried out its 10th consecutive night of strikes on Iran since President Donald Trump declared the ceasefire “over,” while Tehran’s forces have struck U.S. military assets across the Middle East and its Houthi allies have declared a maritime embargo against Saudi Arabia.
Oil prices seesawed on Tuesday as Wall Street monitored a renewed diplomatic push towards mediation efforts between the U.S. and Iran. Reports suggest mediators are proposing a 10-day ceasefire between the two adversaries. West Texas Intermediate crude futures were up 2% at above $85 a barrel, while international benchmark Brent was 2% higher at above $91.
