After starting the week with a negative session, American markets rebounded on Tuesday, driven by the drop in oil prices, which helped to allay concerns about a possible rebound in inflation.
Crude oil fell 5% on the day, weighed down by the lack of additional fiscal stimulus from China and the decline in geopolitical tensions between Israel and Iran.
Meanwhile, Treasury yields paused in their recent rally, providing further relief to investors.
Optimism surrounding the upcoming earnings season also supported traders, leading to further buying of technology stocks and key AI-related companies. The S&P 500 gained 0.8%, the Nasdaq 100 jumped 1.3% on rising tech stocks, while the Russell 2000 saw a more modest 0.4% gain.
The seven stocks in the Magnificent Seven Index — Microsoft Corp. (NYSE:MSFT), Apple Inc. (NASDAQ:AAPL), NVIDIA Corp. (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META) and Tesla, Inc. (NASDAQ:TSLA) — were all in the green, collectively adding about $250 billion to their market capitalization and closing in on a combined market value of $16 trillion.
Meanwhile, the CBOE Volatility Index (VIX) fell 6%, reversing a 17% spike seen on Monday.
Commodity markets were not spared from the broader China-led decline, with metal prices falling sharply. Gold fell 1.2%, while silver fell more than 4%, both reactions following disappointing Chinese stimulus news.
In the cryptomonetary space, the Bitcoin (CRYPTO: BTC) rose 0.5% to $62,479.
Tuesday’s performance on the main US indices and ETFs
| Major clues | Prix | % change over 1 day |
| Nasdaq 100 | 20 051,16 | 1,3 % |
| S&P 500 | 5 742,69 | 0,8 % |
| Russell 2000 | 2 201,50 | 0,4 % |
| Dow Jones | 42 017,06 | 0,1 % |
Data from Benzinga Pro indicates:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.7% to $571.68.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.1% to $420.10.
- The heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rose 1.2% to $487.35.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 0.3% to $218.07.
- The Technology Select Sector SPDR Fund (NYSE:XLK) outperformed with a 1.6% gain. THE Energy Select Sector SPDR Fund (NYSE:XLU) lagged, with a loss of 2.9%.
Tuesday’s stock movements
- Palo Alto Networks Inc. (NASDAQ:PANW) jumped 5% after Goldman Sachs raised its price target from $376 to $425.
- The drop in oil prices has caused increases among cruise lines and airlines. Carnival Corp. (NYSE:CCL) rose 4.5%, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) gained 3.8%, American Airlines Group Inc. (NASDAQ:AAL) a pris 3.7 % et Delta Air Lines Inc. (NYSE:DAL) added 2.8%.
- The hardest hit energy and materials stocks on Tuesday were Marathon Petroleum Corp. (NYSE:MPC), down 7.8%, Freeport McMoRan Inc. (NYSE:FCX), down 5.2%, and Valero Energy Corp. (NYSE:VLO), down 4.9%.
- Docusign Inc. (NYSE:DOCU) jumped 8.3% after announcing its inclusion in the S&P MidCap 400 Index.
- PepsiCo Inc. (NASDAQ:PEP) rose 0.6% in response to its quarterly earnings release.
