The AI trade went two for two. Technology shares led Wall Street higher for a second straight session on Tuesday, as investors kept rewarding anything connected to artificial intelligence ahead of the Federal Reserve’s rate decision on Wednesday. The day’s only real casualty was Boeing, whose worst drop in a year and a half kept the Dow Jones Industrial Average pinned near the flat line.
The Nasdaq Composite climbed 308.43 points, or 1.2%, to close at 26,477.81. The S&P 500 added 45.85 points, or 0.6%, to 7,722.62, leaving it about 1.5% below the record high it set earlier this month. The Dow edged up 15.99 points, a gain of just 0.03%, to 52,377.57. The Russell 2000 small-cap index gained 1.2% to 2,818.87.
A tale of two tapes. Boeing plunged 10.7% to $168.18, its worst day since April 2025, after the planemaker told investors it will not significantly ramp up 737 Max production until late 2027 and will fall short of delivery targets for its crucial commercial jets, even as it narrowed its third-quarter loss. That single stock was the anchor on the Dow. Almost everywhere else, money kept moving into AI. Broadcom rose 4% a day after a $63 billion financing package was announced with Bank of America, Blackstone, Citi and Morgan Stanley to fund Anthropic’s purchases of AI chips, the largest debt raise ever assembled for AI infrastructure. The companies that build the data centers followed: Dell jumped 7.4%, Super Micro Computer gained 7.3% and CoreWeave surged 7.9%. Advanced Micro Devices rose 5.5%, Intel added 3.6% and Taiwan Semiconductor climbed 3%.
Earnings delivered winners beyond tech. United Parcel Service rose 5.8% after beating quarterly profit expectations and raising its annual forecasts, saying higher-margin packages are doing more of the work. General Motors gained 5.5% after announcing it will move its stock listing from the New York Stock Exchange to the Nasdaq. Caterpillar added 3.1%. Tesla rose 4% to $407.46, extending its rebound.
The holdouts. Meta fell 1.6% ahead of its expected Wednesday earnings report, still carrying the weight of its planned $95 billion AI capital raise. Netflix slid another 2.2%, deepening its post-earnings slump. Microsoft dipped 0.2% ahead of its report Wednesday evening. Energy was the weakest sector as oil prices fell: Exxon Mobil dropped 2.5% and Chevron lost 1.6%.
Oil breaks a round number. Crude extended its slide as Middle East peace talks raised hopes that supply disruptions could ease. Officials from Saudi Arabia, Turkey and Pakistan met with Iranian officials in Tehran on Monday, and traders looked past the risk of fresh strikes. West Texas Intermediate settled down 1.9% at $99.90 a barrel, its first settle below $100 since the latest run-up began, while Brent settled at $113.88, down $1.93. Gold settled up 0.9% at $4,074.60 an ounce. The 10-year Treasury yield inched up to about 5.00%, and the dollar index rose 0.4% to 102.32.
What it means for you. A second straight day of AI-led gains is rebuilding retirement-account balances after a rocky two weeks, and cheaper oil is starting to take pressure off gasoline and shipping costs at the same time. Boeing’s warning matters beyond one stock: the 737 Max is one of America’s biggest manufacturing programs, and slower production ripples through thousands of suppliers and the towns around them.
All eyes on tomorrow. The Federal Reserve wraps up its two-day meeting Wednesday with a rate decision at 2 p.m. Eastern. Policymakers are widely expected to hold rates steady in their last decision before the midterm elections, so the statement’s language on inflation will carry the day. Then the earnings floodgates open after the closing bell, when Microsoft and Alphabet report, with Meta expected to join them. Amazon follows Thursday evening, and Apple reports early next week.
JBizNews Desk | Wall Street
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