The U.S. stock market rose on Tuesday as strong gains in the technology sector bolstered investor sentiment. The S&P 500 added 0.58% to close at 5,970.37, while the Dow Jones Industrial Average gained 214.16 points, or 0.51%, ending at 42,519.64. The Nasdaq Composite climbed 0.81% to settle at 19,398.96.
Tech giant Nvidia played a significant role in driving this advance, along with other chip stocks. Nvidia advanced nearly 3%, extending Monday’s gains. “The Street is seeing past this game of high-stakes poker and believes that upcoming discussions between President Trump and Chinese President Xi Jinping are bullish for U.S.-China relations,” said Dan Ives, analyst at Wedbush Securities.
Nvidia is viewed as a key beneficiary of trade talks between the two countries. However, CFRA Research’s Sam Stovall cautioned that the market might remain range-bound for some time. “We’re not going to get second quarter GDP data until July, and we’re also not going to start seeing second quarter earnings data until then,” he said.
“The market is going to bob and weave in the meantime until we get a clearer understanding of the outlook for earnings and GDP growth.”
The Organization for Economic Co-operation and Development (OECD) has revised its forecast for the U.S. economy, now predicting a growth rate of 1.6% in 2025, down from 2.2%. Tariffs and policy uncertainty were cited as key factors for the reduction. On Tuesday, the S&P 500 finished at 5,970.37, the Nasdaq Composite closed at 19,398.96, and the Dow Jones Industrial Average ended the day at 42,519.64.
U.S.-China talks lift tech stocks
The alcohol maker Brown-Forman, known for Jack Daniel’s, faces uncertainty due to President Trump’s fluctuating tariff policies. “Uncertainty dominates, and many root causes can be traced to decisions in the Oval Office,” noted Bernstein analyst Nadine Sarwat.
Concerns over possible retaliatory measures from the European Union might deter investors from buying Brown-Forman shares at current valuations. Dollar General surged more than 15% in afternoon trading after it raised its outlook and reported better-than-expected quarterly results. This puts the retailer’s shares on track for their largest single-day percentage gain ever.
Clean energy stocks outperformed the broader market on Tuesday. The sector is on pace for its sixth weekly gain in the past seven, and the exchange-traded fund tracking clean energy stocks is up 4%, marking its best daily performance since May 12. The Aerospace and Defense ETF hit an all-time high, led by gains in shares such as Lockheed Martin, up over 5%, and Northrop Grumman, which increased more than 4%.
Atlanta Federal Reserve President Raphael Bostic indicated that he expects an interest rate cut before the year’s end. “I put one cut for the year, so I still think there’s space for that,” Bostic told reporters. He noted a high level of apprehension from business leaders in the Southeast, leading to a cautious approach toward investments and hiring.
Shares of Joby Aviation surged more than 13% after the company announced a memorandum of understanding to explore entering the Saudi Arabian market. The agreement includes the potential delivery of up to 200 aircraft in the coming years.
