US Stock Market Rises Despite Chip Stocks Downturn
The US stock market saw most of its major indices rise on Tuesday, despite losses in chip stocks. The Dow Jones Industrial Average increased by 385 points, or 0.7%, while the Nasdaq composite dropped 0.6%. Companies like Coca-Cola, Sherwin-Williams, and Illinois Tool Works reported stronger profits than expected for the latest quarter.
The US market's performance is influenced by corporate profits over the long term. Expectations are high for this round of earnings reports, with the stock market sitting near its all-time high.
The chip stocks are experiencing a downturn due to concerns about the sustainability of their growth. Micron Technology's stock has more than tripled this year after gangbuster growth, but worries are rising that big spenders may pull back on investments if artificial-intelligence technology does not produce as much profit or productivity as promised.
The price for a barrel of Brent crude oil fell 2.2% to $83.97, easing further from the two-month high it hit last week. This helped ease Treasury yields in the bond market, with the yield on the 10-year Treasury falling to 4.62% from 4.65% late Monday.