S&P Rises on Nvidia Fortunes
The Dow Jones Industrials moved ahead 191.18 points to 42,496.66.
The broader index added 34.6 points to 5,970.54
The NASDAQ Composite surged 172.67 points to 19,415.29.
Joby Aviation shares surged more than 13% after entering a memorandum of understanding to explore opportunities for entering the Saudi Arabia market.
Nvidia, along with other chip stocks, helped drive this advance. The dominant maker of artificial intelligence chips advanced more than 3%, extending Monday’s gain and passing Microsoft in market cap for the first time since January. Meanwhile, others like Broadcom picked up 3% and Micron Technology rose 2%.
Tuesday’s declines follow the Organization for Economic Co-operation and Development cutting its U.S. growth outlook. The OECD now sees the U.S. economy expanding by just 1.6%, down from 2.2%.
Beijing countered President Donald Trump’s accusations that it had violated a temporary trade agreement. Investors had grown hopeful that the two countries could work out a trade deal, but this latest development points to negotiations taking a turn for the worse.
Meanwhile, the European Union criticized Trump’s intention to double steel tariffs to 50%, saying that such a move “undermines” its own negotiations with the U.S. An EU spokesperson said that the bloc was “prepared to impose countermeasures.”
Prices for the 10-year Treasury backpedaled, raising yields to 4.46% from Monday’s 4.45%. Treasury prices and yields move in opposite directions.
Oil prices prospered $1.04 to $63.56 U.S. a barrel.
Gold prices retreated $27.20 to $3,343.40 U.S. an ounce.