LIVE MARKETS-Wall Street snaps losing streak as chips rebound
SPY•Energy gains on Middle East tensions
Energy shares .SPNY advanced as widening hostilities in the Middle East as a result of the U.S.-Iran war fanned fuel supply worries. Front-month WTI and Brent crude futures rose to five-week highs; both settled up 2.0%.
Here's your closing snapshot:
Earnings season and AI worries shape sector moves
There were no catalysts in the form of economic data, but a series of strong, beat-and-raise quarterly reports from industrials, including Hasbro HAS.O, GM GM.N and 3M MMM.N and Northrop Grumman NOC.N appeared to justify sky-high earnings estimates.
At last glance, analysts expect year-on-year S&P 500 earnings growth of 26.0%, on aggregate, for the April-to-June period.
On Wednesday, Alphabet GOOGL.O, Tesla TSLA.O and IBM IBM.N will give investors a glimpse of the tech side of things.
Alphabet faces elevated investor scrutiny following the delay in the launch of its Gemini AI model, even as Chinese open-source models pose an increasing challenge to U.S. developers and further stoke worries over massive data center spending.
Last week, IBM issued a disappointing pre-announcement, forecasting Q2 revenue and profit would fall short of estimates, saying that it failed to keep pace with a corporate spending shift from software to data-center infrastructure, underscoring looming concerns over AI's potential disruption of software companies. The S&P Software & Services Index .SPLRCIS ended down 1.1% and remains off 18.2% so far this year.
Wall Street ends three-day slump as chips rebound
Wall Street advanced on Tuesday, breaking a three-day slump with a solid boost in the form of a chips bounce-back.
The Dow Jones Industrial Average .DJI rose 385.38 points, or 0.74%, to 52,224.64, the S&P 500 .SPX gained 65.92 points, or 0.89%, to 7,509.20 and the Nasdaq Composite .IXIC gained 329.13 points, or 1.29%, to 25,837.21.
