Updated 1 min read
US stocks climbed on Tuesday as oil prices eased and bond yields declined. Chip stocks trimmed losses, and investors turned their focus to a slew of earnings out this week.
The Dow Jones Industrial Average (^DJI) rose 1%, and the S&P 500 (^GSPC) gained 0.4%. The Nasdaq Composite (^IXIC) erased its decline, climbing 0.2% after the major averages closed mixed on Monday, as tech stock rebounded.
52,477.04 +511.01 (+0.98%)
As of 2:22:38 PM EDT. Market Open.
^DJI ^GSPC ^IXIC
The AI trade came into focus on Tuesday after Elice (0158S0.KQ), a South Korean data center provider, saw its shares plunge 32% during its public debut in Seoul, underscoring lingering concerns about the health of the AI trade.
Investors turned their attention to a fresh round of corporate earnings this week. General Motors (GM) tightened its profit outlook but announced a $20 billion share buyback program. United Airlines (UAL) will report after the close.
Streaming giant Netflix (NFLX) will report quarterly earnings after the bell on Tuesday. EV maker Tesla (TSLA) and social media giant Meta (META) are expected to post results on Wednesday.
On the economic front, housing starts fell to a four-month low amid soft demand, with mortgage rates remaining elevated.
Brent crude futures (BZ=F) fell to $108 per barrel, while West Texas Intermediate crude (CL=F) traded near $98 per barrel. A US official on Tuesday reiterated President Trump has no plans to attack Iran before the mid-term elections.
LIVE 10 updates
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Stocks rally broadly as Wall Street’s biggest names sit it out
Small caps are surging and health care just hit a record. Meanwhile, Big Tech is stalling.
Stocks opened mixed, with chip stocks (^SOX) sliding and oil c(CL=F) near a five-month high. The rally spread through the morning as oil turned lower and chipmakers clawed back their losses.
Now about 3 of every 4 S&P 500 stocks are rising, putting the index on pace for its broadest day since June. The Russell 2000 (^RUT) is beating the S&P 500 by the widest margin since June, too.
Health care is the standout.
The Health Care Select Sector SPDR (XLV) is at a record, led by Eli Lilly (LLY), the top gainer among the 10 biggest US stocks. UnitedHealth (UNH) and Merck (MRK) are rallying, too. With oil easing midday, airlines and homebuilders are joining in.
At the top, it’s a split decision.
Meta (META), Alphabet (GOOG, GOOGL), and Apple (AAPL) are lower, erasing tens of billions in market value and offsetting gains in Lilly and Tesla (TSLA). Nvidia (NVDA), Microsoft (MSFT), and Broadcom (AVGO) are hovering near flat.
689.84 -15.60 (-2.21%)
As of 2:22:38 PM EDT. Market Open.
META GOOGL AAPL
The S&P 500 sits about 1% below its record close. Watch whether the rest of the market can carry it there without its heaviest hitters.
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AI jitters clobber South Korea’s Elice as stock sinks 32% in trading debut
Concerns over the AI trade resurfaced after South Korean data center provider Elice’s (0158S0.KQ) stock plunged 32% on its first day of trading.
Elice, which rents out AI compute capacity, raised roughly $151 million, with investor demand oversubscribing the IPO by roughly 400 times.
61,500.00 -29,000.00 (-32.04%)
At close: 3:30:02 PM GMT+9
However, the stock’s sharp decline highlighted investor concerns about valuations and long-term profitability, particularly if hyperscalers curb spending or borrowing costs rise further.
Read more here.
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Meta’s Muse AI agent hits 10.9 million downloads as ChatGPT slides 25%
Yahoo Finance’s Brian Sozzi reports:
If the excitement around Meta’s (META) new Muse AI agent is slowing down, you certainly don’t see it in the download numbers Wall Street is tracking like a hawk.
Meta’s Muse has amassed 10.9 million downloads since its launch on Sept. 8, according to newly released data from Sensor Tower. Muse has received more than 10.2 million downloads from the US alone. In contrast, US downloads for OpenAI’s (OPAI.PVT) ChatGPT in the past 30 days have declined by 25% over the prior 30-day period.
Read more here .
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Tesla Q3 preview: Delivery outlook, cash flow, and a dash of merger speculation on tap
Yahoo Finance’s Pras Subramanian reports:
Tesla (TSLA) will report third quarter results after the closing bell on Wednesday, with profits and cash flow squarely in focus, with a dash of merger speculation.
Tesla is expected to report Q3 revenue of $28.13 billion, flat year over year, per Bloomberg consensus. Adjusted EPS is estimated at $0.44, with adjusted EBITDA of $3.66 billion.
Consensus EBIT of $760 million, a 2.7% margin, would be a step up from $400 million and 1.4% in Q2.
Read more here.
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Qualcomm stock jumps on report of job cuts next month
Qualcomm (QCOM) shares rose 1% following a report that the designer of chips for smartphones plans to start cutting jobs globally next month as part of a “performance-focused reduction” following employee reviews.
The plan was outlined in a memo to staff from CEO Cristiano Amon, which Reuters reviewed. Notifications are set to start in November.
The memo did not specify how many positions would be affected.
Qualcomm shares are up more than 2% year-to-date.
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Chip stocks set a possible bear trap
Wall Street is in a buying mood. The AI trade’s leaders had to bleed a little before joining in.
The PHLX Semiconductor Index (^SOX) slipped below Friday’s close early, giving back Monday’s rebound from an eight-session losing streak, as my colleague Ines Ferré reported. Then buyers showed up right at the summer floor near 11,000.
Chip stocks dipped into their summer floor and bounced. A close above Friday’s level would confirm the bear trap · Yahoo Finance AlphaSpace Chart watchers know this setup.
A dip below support that quickly reverses is a bear trap, catching traders who bet on a breakdown. But it only counts if chips close back above Friday’s level.
And history says don’t relax yet. After every losing streak of seven sessions or more since 1994, the index traded below the streak’s final close within a month. After the longest ones, it was lower a month later most of the time.
A BofA Global Research report calls last week’s rout a “positioning-driven hiccup on the fringes of the AI trade.” The credit market isn’t so sure. The cost of insuring Oracle’s debt is at its highest since at least 2021, and even the megacaps’ default swaps are creeping up.
A close above 11,137 springs the trap. Lose 11,000, and the next stop is closer to 10,450.
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Stocks open mixed as Wall Street weighs earnings against higher rates
US stocks were mixed at Tuesday’s open as investors weighed another batch of corporate earnings against pressure from higher government bond yields.
The Dow Jones Industrial Average (^DJI) rose 0.4% while the S&P 500 (^GSPC) fell 0.1%. The Nasdaq Composite (^IXIC) declined 0.5% after the major averages closed mixed on Monday as tech stocks rebounded.
52,477.04 +511.01 (+0.98%)
As of 2:22:38 PM EDT. Market Open.
^DJI ^GSPC ^IXIC
Investors remain focused on whether strong third-quarter earnings can keep stocks moving higher after last week’s volatility. At Tuesday’s open the benchmark 10-year Treasury yield (^TNX) hovered at 5.10%, keeping pressure on stock valuations though easing over the last week.
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CoreWeave hits a 17-month low as AI credit jitters return
AI infrastructure stocks are under pressure again before the opening bell. CoreWeave (CRWV) is taking the hardest hit.
The AI cloud provider is trading at its lowest level since May 2025 premarket, extending a slide of more than 40% since Oct. 6.
So what’s spooking investors? The debt. CoreWeave borrowed heavily to build its data centers, and its bonds sold off across maturities last week, as my colleague Brian Sozzi reported.
Siebert Financial chief investment officer Mark Malek isn’t rushing in. Some AI stocks are “honestly down for the right reason,” he said Monday on Yahoo Finance’s Market Hang. He “wouldn’t back up the truck.”
CoreWeave has company.
Every chip stock trading premarket in a 60-stock Yahoo Finance semiconductor basket is lower, with SK hynix (SKHY) and Nebius (NBIS) among the hardest hit. The rest of the market is calmer, with S&P 500 gainers outnumbering decliners roughly 3 to 2.
Monday’s low of $59.25 is the line in the sand. A snap back above it would make this breakdown a bear trap — a fake-out that burns traders betting on more losses.
Stay below, and the next stops are around $53, then the all-time low at $33 and change.
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GM beats on Q3 results, tightens profit outlook, and unveils new $20 billion buyback
Yahoo Finance’s Pras Subramanian reports:
GM (GM) posted third quarter results before the bell that topped estimates. The automaker tightened its full-year profit outlook instead of boosting it, but issued shareholders a new $20 billion share repurchase program instead.
75.82 -6.93 (-8.38%)
As of 2:22:38 PM EDT. Market Open.
For the quarter, GM posted Q3 revenue of $50.0 billion, up 2.9% from a year ago and above the $48.52 billion Bloomberg consensus. GM posted adjusted EPS of $3.70 vs $3.57 estimated, with adjusted EBIT coming in at $4.1 billion, ahead of the $4.02 billion expected and up nearly 22%.
Read more here.
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Trump announces $8 billion for farmers to offset soaring diesel costs
President Trump announced an $8 billion aid package on Monday to help US farmers pay for diesel this harvest season.
The relief program, announced at a campaign rally in Kansas and on social media, aims to bring down fuel costs for Americans ahead of next month’s midterm elections.
“Tonight, I am also pleased to announce that the Department of Agriculture will be launching a new ‘Harvest Fuel Relief Program,’ providing our Farmers with 8 BILLION DOLLARS in support to offset Diesel costs during this Harvest Season,” Trump’s account posted on Truth Social (DJT).
Read more here.
