NEW YORK—Wall Street's main stock indexes closed higher on Tuesday, with the Nasdaq leading gains as a sharp rebound in artificial intelligence-linked semiconductor shares lifted technology stocks ahead of a closely watched round of earnings from major U.S. technology companies.
The Nasdaq Composite advanced 1.29% to 25,837.21, while the S&P 500 gained 0.89% to 7,509.20. The Dow Jones Industrial Average rose 385.38 points, or 0.74%, to 52,224.64, according to market data. The Philadelphia Semiconductor Index climbed about 5.2%, extending its recovery after last week's sharp decline from record highs.
Technology shares drove much of the advance, with investors returning to chipmakers that had come under pressure during a recent selloff tied to concerns over valuations, geopolitical tensions and trade policy. Shares of several major semiconductor companies, including Nvidia, Micron Technology and Intel, posted strong gains as investors positioned ahead of quarterly earnings expected from leading technology firms.
Market participants said the rebound reflected renewed confidence that demand tied to artificial intelligence infrastructure remains intact, although investors continued to monitor broader risks including higher oil prices, tariff developments and the outlook for interest rates. Lindsey Bell, chief investment strategist at 248 Ventures, told Reuters that investors were buying back into semiconductor stocks before earnings amid expectations that major companies could deliver stronger-than-expected results and guidance.
The market's gains came despite continued increases in crude oil prices linked to tensions in the Middle East. Brent crude briefly traded near $92 a barrel before easing, while U.S. Treasury yields remained elevated, reflecting persistent concerns that higher energy costs could complicate the inflation outlook.
Outside the technology sector, earnings helped support broader market sentiment. Shares of industrial conglomerate 3M and automaker General Motors advanced after both companies issued results that exceeded analysts' expectations, contributing to gains in the Dow and S&P 500.
Investors are now focused on earnings due later this week from several of the largest U.S. technology companies, which are expected to provide fresh insight into corporate spending on artificial intelligence and whether the sector's strong market performance can be sustained.
