The stock market closed higher on Tuesday, with the S&P 500 and Dow Jones Industrial Average both posting gains. The S&P 500 rose 0.58% to 5,970.37, while the Dow climbed 214.16 points, or 0.51%, to 42,519.64. The Nasdaq Composite saw the biggest increase, rising 0.81% to 19,398.96.
This was largely driven by strong performance in the technology sector, particularly from Nvidia. The chipmaker, known for its AI technology, advanced nearly 3%. Dan Ives from Wedbush Securities noted that ongoing U.S.-China trade deal talks are benefiting companies like Nvidia.
However, Sam Stovall of CFRA Research cautioned that the market could stay volatile until more economic data comes out in July. The OECD lowered its forecast for U.S. economic growth in 2025 to 1.6% from 2.2%. It cited tariffs and policy uncertainty as key reasons.
Treasury Secretary Scott Bessent mentioned upcoming talks between President Trump and Chinese President Xi Jinping, which brought some optimism to the market. Brown-Forman, the company behind Jack Daniel’s, is facing challenges due to changing tariff policies.
nasdaq’s tech-driven ascent
Bernstein analyst Nadine Sarwat said potential tariffs and consumer pressure are making investors wary of the stock before its fiscal Q4 earnings report. In other news, Dollar General jumped over 15% after raising its outlook and posting strong quarterly earnings. This was its biggest one-day percentage gain ever.
A clean energy fund had its best daily performance since May 12, increasing by 4%. The Aerospace and Defense ETF reached a record high, boosted by gains from Lockheed Martin and Raytheon Technologies. This continues a positive trend seen in recent days.
Atlanta Fed President Raphael Bostic predicted a possible interest rate cut before the end of the year, despite uncertainty impacting business decisions. Business sentiment in the Southeast U.S. has become more negative, leading companies to pause major investments. Joby Aviation, an eVOTL aircraft company, saw its stock rise over 13% after signing an agreement with Abdul Latif Jameel to explore opportunities in Saudi Arabia.
The deal could involve delivering up to 200 Joby aircraft in the future. Overall, it was a day of solid gains for stocks, influenced by optimism in the tech sector and ongoing economic changes.