Wall Street rises on revived AI momentum as earnings season picks up
SPY•U.S. stocks rose as AI-related momentum lifted technology shares and third-quarter earnings season gathered pace. The S&P 500 gained 0.57%, the Nasdaq rose 1.14% and the Dow was essentially unchanged.
1. Technology shares lead
An AI-fueled tech rally sent U.S. stocks higher on Tuesday, while easing oil prices soothed inflation concerns. The Nasdaq rose 1.14% to 26,467.06, the S&P 500 gained 0.57% to 7,720.63, and the Dow was essentially unchanged at 52,364.02. Chip stocks rose for a third consecutive session as attention turned to Anthropic's impending initial public offering.
2. Earnings move shares
Nearly half of S&P 500 companies had reported third-quarter results, and 83% of those results were better than expected, based on the most recent available LSEG data. Boeing fell 9.7% after reporting a larger-than-expected quarterly loss, while Xylem dropped 12.4% after trimming its full-year forecasts. Royal Caribbean rose 6.5% after lifting its full-year profit forecast.
3. Spending and rates
Meta increased its largest-ever equity fundraising to $97.5 billion to fund its AI expansion; its shares fell 1.2%. Economic data showed rising new orders for computers and peripheral equipment. The Federal Reserve convened for its October meeting, with a decision to hold the fed funds target rate at 3.75% to 4% widely expected.
