The S&P 500 climbed 0.6% on Tuesday, bringing it within 1.2% of its all-time high set earlier this month. Despite most stocks in the index falling, gains in artificial-intelligence (AI) stocks drove the overall market higher. AI stocks rebounded after weeks of volatility amid concerns over rising borrowing costs for data centers and AI chips. Broadcom led the charge with a 4.2% rise after securing a $63 billion financing deal to support Anthropic's access to its XPU AI accelerators.
Other notable movers included Nvidia, up 0.8%, and CoreWeave, which surged 8.5% following recent volatile trading. General Motors (GM) jumped 5.6% after announcing its move from the New York Stock Exchange to the Nasdaq, aligning with its tech-driven strategy. JetBlue Airways soared 20.3% despite reporting a larger-than-expected summer loss, while Royal Caribbean Group rose 5.5% after delivering stronger-than-expected profits and raising its annual forecast.
Boeing fell 10.2% after reporting a larger quarterly loss than anticipated. Hilton Worldwide Holdings dropped 2.6% due to weaker summer revenue and a profit forecast below analysts' expectations. Sherwin-Williams declined 1.9% as high mortgage rates dampened demand for its paints and coatings. CEO Heidi Petz noted muted demand ahead due to inflation and rising raw material costs.
U.S. consumer confidence improved in October, defying expectations of further weakening. Treasury yields remained steady ahead of the Federal Reserve's interest rate decision, with the 10-year yield edging down to 4.99%. Oil prices fell 1.2%, helping to stabilize yields. Overseas, stock markets saw mixed results, with Seoul up 3.1% and Shanghai down 1.3%.