The Dow Jones Industrial Average saw an uptick on Tuesday, propelled by the robust performance of Nvidia, a key entity in the artificial intelligence domain, after a prior session rally that pushed it to unprecedented levels. The blue-chip Dow experienced an increase of 171 points, representing a rise of 0.4%. The S&P 500 experienced an increase of 0.4%, mirroring the performance of the Nasdaq Composite. Nvidia’s nearly 2% contribution provided support to the three major averages. Other equities linked to AI also supported the broader market, including Amazon, Micron Technology, and Palantir Technologies. The three entities recorded increases of more than 1%, surpassing 7%, and approaching 2%, respectively.
The 30-stock benchmark achieved a record high on Monday, propelled by the U.S. capture and ousting of Venezuelan leader Nicolas Maduro over the weekend, coinciding with President Donald Trump’s call for significant investments from U.S. oil companies. Energy stocks saw a notable rise on Monday, with the S&P 500 energy sector achieving its largest single-day gain since July. Chevron, SLB, and Halliburton demonstrated a resurgence in their performance once again on Tuesday.
“Historically, headline-capturing geopolitical events can produce short-term volatility and falling equity prices,” remarked Tom O’Shea. “However, in this instance, the S&P 500 rose on the first trading day following the operation, with energy stocks leading the gains on anticipation that U.S. companies may benefit from potential infrastructure rebuilding in Venezuela.” Defense stocks, precious metals, and Bitcoin have shown a rally, reflecting a diverse reaction from investors.
Market participants are bracing for substantial U.S. economic data set to be unveiled this week. The December ADP private payrolls report is scheduled for release on Wednesday morning, with the government’s monthly jobs report to follow on Friday.