Wall Street saw a boost on Tuesday, driven by gains in the artificial intelligence sector. The S&P 500 rose 0.6%, bringing it within 1.2% of its all-time high set earlier this month. The Dow Jones Industrial Average added 15 points, while the Nasdaq composite climbed 1.2%. Despite most stocks in the S&P 500 falling, the strong performance of AI-related companies offset the losses.
Broadcom led the charge with a 4% increase after announcing a $63 billion financing deal to support Anthropic in accessing its XPU AI accelerators. Nvidia also contributed to the rally with a 0.9% gain, while CoreWeave surged 7.9% after several volatile days. The AI sector has seen significant swings recently due to concerns over high borrowing costs for data centers and AI chips.
Outside the tech sector, General Motors climbed 5.5% after announcing its move from the New York Stock Exchange to the Nasdaq, aligning with its tech-driven strategy. JetBlue Airways rose 19% despite reporting a larger-than-expected summer loss, as investors focused on its forecast of sustained profits next year. Royal Caribbean Group also gained 5.5% after delivering stronger-than-expected profits and raising its full-year forecast.
Not all companies fared well. Boeing fell 10.7% after reporting a larger-than-expected quarterly loss, while Hilton Worldwide Holdings sank 2.1% due to weaker revenue and a disappointing profit forecast. Sherwin-Williams dropped 2.7% as high mortgage rates and inflation pressures weighed on demand for its products. Despite these setbacks, U.S. consumer confidence improved in October, defying expectations of further weakening.