Wall Street Climbs as AI Stocks Rally, Brent Crude Nears $92 Amid Iran War/ Newslooks/ WASHINGTON/ J. Mansour/ US stocks advanced Tuesday as Micron, Nvidia and other artificial intelligence companies extended their recovery from the previous week’s sell-off. The S&P 500 gained 0.9%, while the Dow rose 501 points and the Nasdaq composite climbed 1.3% in midday trading. Brent crude approached $92 per barrel as continued US-Iran attacks increased concerns about inflation and interest rates.
Quick Look
- The S&P 500 rose 0.9% Tuesday afternoon.
- The Dow Jones Industrial Average gained 501 points, or 1%.
- The Nasdaq composite advanced 1.3%.
- AI stocks increased for a second consecutive session.
- Micron Technology jumped 11.9%.
- Nvidia gained 0.9%.
- Brent crude rose 2% to $91.03 per barrel.
- Oil briefly approached $92, its highest level in more than five weeks.
- Brent traded below $72 earlier in July.
- The 10-year Treasury yield increased to 4.63%.
- 3M climbed 9% after beating earnings expectations.
- Hasbro rallied 7.4% as Magic: The Gathering generated more than $500 million in quarterly revenue.
- General Motors gained 4.9% following stronger profit and revenue.
- Danaher sank 13.3% because of a weaker summer growth forecast.
- D.R. Horton slipped 0.2% amid housing affordability concerns.
- South Korea’s Kospi jumped 3.6%.
- Tokyo’s Nikkei 225 rose 3.3%.
- The UK’s FTSE 100 added 0.6%.
Deep Look
AI Stock Recovery Lifts Wall Street
NEW YORK — Wall Street moved higher Tuesday as semiconductor manufacturers and other beneficiaries of the artificial intelligence boom extended their recovery from the previous week’s steep losses.
The S&P 500 climbed 0.9%.
The Dow Jones Industrial Average was up 501 points, or 1%, as of 12:32 p.m. Eastern time.
The technology-heavy Nasdaq composite gained 1.3%.
AI companies were again at the center of the market’s movement, rising for a second consecutive day following their recent decline.
Micron Technology Jumps Nearly 12%
Micron Technology surged 11.9%, building on its 1.9% gain Monday.
The memory-chip company was recovering from a 13.3% loss during the previous week.
Together, Micron and Nvidia were among the strongest contributors to the S&P 500’s advance.
Both companies have benefited from the massive increase in spending on AI chips, servers and data centers.
Investors Question AI Valuations
AI-related stocks had soared as technology companies committed billions of dollars to building artificial intelligence infrastructure.
Their rapid gains eventually raised concerns that share prices had climbed too high compared with expected profits.
Investors are also questioning whether the current level of spending can continue if artificial intelligence produces less revenue and productivity than companies anticipate.
Tuesday’s gains showed renewed confidence in the sector, although questions about valuations and future demand remain.
Brent Crude Climbs Above $91
Stocks advanced despite another increase in oil prices caused by continuing attacks between the United States and Iran.
Brent crude, the international benchmark, rose 2% to $91.03 per barrel.
The price briefly approached $92 for the first time in more than five weeks.
Brent traded below $72 per barrel earlier in July, roughly matching its level before the war with Iran began.
The rapid increase reflects concerns about energy production and shipping as fighting threatens oil supplies from the Persian Gulf.
Higher Oil Could Reignite Inflation
Rising oil prices threaten to accelerate inflation after recent data showed consumer-price increases slowing more than economists expected.
More expensive crude can raise the cost of gasoline, transportation, manufacturing and consumer goods.
Renewed inflation pressure could encourage the Federal Reserve and other central banks to increase interest rates.
Higher rates would slow economic activity by making borrowing more expensive and could place downward pressure on stocks and other investments.
Treasury Yield Rises to 4.63%
The yield on the 10-year Treasury note increased to 4.63% from 4.60% late Monday.
It stood at 3.97% before the war with Iran began.
Rising Treasury yields have already pushed mortgage rates to their highest level in nearly a year.
Higher yields also create competition for stocks because investors can earn greater returns from government bonds.
3M Raises Annual Profit Forecast
Strong corporate earnings helped Wall Street overcome some of the pressure from oil prices and Treasury yields.
3M climbed 9% after exceeding analysts’ quarterly profit and revenue expectations.
The company also raised its full-year profit forecast for 2026.
An improved annual outlook can support a company’s shares by signaling confidence in future demand, costs and operating performance.
Hasbro Rallies on Magic Revenue
Hasbro gained 7.4% following its latest financial report.
The toy and entertainment company said Magic: The Gathering generated more than $500 million in quarterly revenue for the first time.
Hasbro also raised its revenue projection for the full year.
The strong performance demonstrated the importance of the fantasy card game to the company’s overall business.
General Motors Gains Nearly 5%
General Motors rose 4.9% after reporting quarterly profit and revenue above Wall Street forecasts.
CEO Mary Barra said consumer demand in North America remained strong.
The results eased concerns that inflation, higher borrowing costs and economic uncertainty would significantly weaken vehicle sales.
Automakers remain sensitive to interest rates because many customers rely on financing when purchasing cars and trucks.
Danaher Falls Despite Earnings Beat
Danaher dropped 13.3% even though the company exceeded analysts’ expectations for both profit and revenue.
Investors focused instead on the company’s forecast for an underlying measure of summer revenue growth.
That projection was weaker than Wall Street had anticipated.
The decline illustrated the high expectations facing companies whose shares already reflect assumptions of strong future growth.
D.R. Horton Faces Housing Pressure
Homebuilder D.R. Horton slipped 0.2% despite reporting profit and revenue above analysts’ forecasts.
Executive Chairman David Auld said housing affordability concerns and caution among potential buyers continued to affect the business.
Mortgage rates have reached their highest level in nearly a year because of rising Treasury yields.
D.R. Horton may need to offer additional buyer incentives during the current quarter, which could reduce its profit margins.
Companies Must Justify High Valuations
Major US stock indexes remain near record levels despite recent turbulence among artificial intelligence companies.
That strength has placed pressure on businesses to report significant growth in revenue and earnings.
Even companies that exceed current-quarter expectations can experience steep share-price declines if their future projections disappoint investors.
Tuesday’s trading demonstrated that forecasts can have as much influence as reported results.
European Markets Rise Modestly
European stock indexes recorded moderate gains.
The United Kingdom’s FTSE 100 advanced 0.6% as new Prime Minister Andy Burnham held his first Cabinet meeting.
Other major European markets also moved higher, although their gains were smaller than some of the increases recorded in Asia.
Kospi Rebounds 3.6%
South Korea’s Kospi surged 3.6%, supported by gains for Samsung Electronics and SK Hynix.
The two companies dominate the South Korean market and have benefited significantly from artificial intelligence spending.
The Kospi has risen 60% during 2026 despite falling 20% so far in July.
Those moves illustrate the extreme volatility affecting markets with heavy exposure to AI and semiconductor companies.
Asian Markets Record Strong Gains
Tokyo’s Nikkei 225 jumped 3.3% after reopening following Monday’s holiday.
Shanghai gained 1.8%.
Hong Kong edged down by less than 0.1%, making it one of the few major Asian markets that did not participate in the broader advance.
The regional movements reflected renewed demand for technology stocks despite continuing concern about oil prices and global inflation.
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