Wall Street opened higher on Tuesday as Treasury yields eased from multi-year highs and oil prices declined, while investors looked ahead to the third-quarter earnings season and the Federal Reserve’s September meeting minutes.
The Dow Jones Industrial Average rose 227 points while the S&P 500 gained 0.49%. The Nasdaq Composite added 0.57%.
The S&P 500 also hit a high of 7817.13 points, beating its previous all-time high of 7,816.7 points, which it recorded back in August.
The Nasdaq Composite ended at a record high on Monday, supported by gains in major technology stocks as investors continued to favour artificial intelligence-related companies.
Technology stocks support Wall Street
Technology stocks were among the main drivers of Tuesday’s gains.
Nvidia rose 0.9% in trading, bringing the market value of the world’s most valuable company close to $6 trillion.
Advanced Micro Devices gained about 0.12% after CEO Lisa Su said the company planned to substantially increase chip supply in 2027 to meet strong demand for AI-related products. Broadcom also traded higher.
Most of the so-called Magnificent Seven stocks rose, including Meta, Tesla and Amazon.
The technology sector has helped US equities outperform global markets over the past six months, despite higher energy prices and volatility in the bond market.
Investors are also preparing for the third-quarter earnings season, which begins next week with results from major US banks.
Analysts expect S&P 500 earnings to increase more than 30% year over year, according to LSEG data, with AI-related companies expected to account for much of the growth.
Treasury yields retreat from 2002 highs
The 10-year Treasury yield fell about 3 basis points to 5.29%, while the 30-year yield declined more than 2 basis points to 5.66%.
Both yields had reached levels not seen since 2002 on Monday.
The 30-year yield had touched 5.702% on Monday, its highest level since 2002, while the benchmark 10-year yield also climbed to a multi-year high.
A weaker-than-expected US payrolls report last week reduced expectations for another Federal Reserve rate increase this month.
Traders were pricing in a 78% probability that the Fed would keep rates unchanged at its October meeting, according to the CME Group’s FedWatch tool.
However, a December rate increase remained largely priced in.
Investors are now awaiting the minutes from the Fed’s September meeting, due Wednesday.
The release could provide additional insight into policymakers’ decision to raise interest rates last month.
At least four Fed officials, including New York Fed President John Williams, were also scheduled to speak publicly on Tuesday.
Oil prices fall as supply concerns ease
Oil prices also declined, providing another boost to equities. Brent crude fell about 2.3% to around $98 a barrel, while West Texas Intermediate futures dropped about 1.49% to roughly $88.
The decline followed an increase in Middle Eastern crude exports and the G7’s decision to release emergency stockpiles, easing concerns about near-term supply.
The S&P 500 energy sector ETF also fell about 1% in trading.
Meanwhile, Option Care Health jumped 32.8% after McKesson and Clayton Dubilier & Rice agreed to acquire the company in a transaction worth about $5.8 billion, including debt.
Constellation Energy rose 12.7% after Google entered a 3,590-megawatt power agreement with the company.
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