Most U.S. stocks climbed on Tuesday, buoyed by robust earnings reports from major corporations like Equifax and Hasbro. Meanwhile, oil prices retreated after approaching their highest levels since the onset of the conflict with Iran.
The S&P 500 gained 0.3 per cent. The Dow Jones Industrial Average surged 529 points, or one per cent, while continued volatility in the artificial intelligence sector left the Nasdaq composite with a marginal decline of less than 0.1 per cent.
Stock valuations generally track corporate earnings over the long term, and several firms reported quarterly results that exceeded analyst projections. High growth expectations have largely enabled the U.S. market to reach record highs recently, despite ongoing concerns regarding inflation, elevated Wall Street.
Equifax jumped 11.3 per cent, marking one of the day’s top performers, after reporting summer profits that beat expectations despite the impact of high mortgage rates on certain segments of its business.
Hasbro rose 11.2 per cent after the toymaker announced that its “Magic: The Gathering” franchise generated over US$600 million in quarterly revenue for the first time. 3M shares increased 5.8 per cent as the manufacturer of Ace bandages and Scotch-Brite sponges also posted better-than-anticipated profits, even as consumer sentiment remains dampened by persistent inflation.
Equities received a boost after Brent crude prices erased early gains to finish 0.7 per cent lower at US$108.79 per barrel. Earlier in the session, the price had neared US$112, approaching its highest level since the war with Iran began in late February.
If sustained, the decline in oil prices should alletween US$97 and US$112 per barrel this month amid uncertainty regarding when energy markets will stabilize
For now, airlines and other fuel-intensive businesses benefited from Tuesday’s price drop. American Airlines rallied 3.7 per cent, and United Airlines climbed 2.3 per cent.
Another notable gainer was the customer engagement platform Braze. Its stock soared 51.7 per cent to US$45.57 following news that Salesforce intends to acquire the company for US$47.50 per share in cash.
General Motors acted as a drag on the market, falling 6.8 per cent despite reporting profits that topped analyst estimates. The automaker also unveiled a plan to return up to US$20 billion to shareholders through stock buybacks.
Companies are under pressure to deliver strong earnings both now and in the future. GM provided a full-year 2026 profit forecast with a midpoint that failed to meet analyst expectations.
Meanwhile, AI-related stocks remained volatile. These companies have been at the heart of recent market anxiety, as enthusiasm for the technology’s potential is being tempered by fears that high bond yields will restrict the borrowing necessary for firms to purchase AI chips. Last week marked the worst performance for the U.S. market since June, driven largely by weakness in the AI sector.
CoreWeave experienced significant instability. The stock initially dropped more than 6 per cent at the opening bell, swung to a 5 per cent gain, and eventually settled at a 1.7 per cent increase.
Such fluctuations are common for the company, which borrows capital to acquire AI chips for its cloud-based rental business. A day earlier, the stock swung between a 7 per cent gain in the morning and a 3.5 per cent loss in the afternoon, following a roughly 25 per cent decline the previous week.
In total, the S&P 500 rose 21.84 points to 7,712.57. The Dow Jones Industrial Average rallied 529.85 points to 52,495.88, while the Nasdaq composite dipped 6.07 points to 26,424.82.
The struggles for AI stocks on Tuesday originated in Asia, where the South Korean AI firm Elice had a difficult market debut. Its shares plummeted 32 per cent on their first day of trading in Seoul, contributing to a 3.7 per cent decline in South Korea’s Kospi index.
In other international markets, European indexes finished lower after recovering from steeper losses earlier in the session. The CAC 40 in Paris slipped 0.4 per cent, and London’s FTSE 100 fell 0.3 per cent.
European markets had fallen sharply the previous day following violent protests that could force governments to increase spending to address public discontent. Such measures could further strain bond markets, which are already under pressure due to concerns over high levels of government debt.
