Wall Street took a breather Tuesday, with equities edging higher as investors shook off Monday's AI-infrastructure selloff. The rebound was powered by a sharp drop in oil prices and a corresponding pullback in Treasury yields, giving growth stocks some breathing room.
President Donald Trump said on Truth Social that the U.S. Navy removed "all mines" from the Strait of Hormuz. That came a day after Treasury Secretary Scott Bessent threatened sanctions on banks and companies that facilitate trade with Iran. The geopolitical tension had been a key driver of oil's recent surge, so the news of de-escalation hit crude hard.
West Texas Intermediate crude slid 3.4% to $82.11 a barrel, extending losses below $82 for the first time in weeks. Brent crude fell 3.7% to $88.81, breaking back under the $90 threshold.
Energy Price Retreat Takes Pressure Off the Long End
The 10-year Treasury yield eased to 4.65%, down 6 basis points and off the 20-month high of 4.75% struck on Aug. 21. The 30-year fell 5 basis points to 5.18%, and the two-year slipped 2 basis points to 4.21%.
Across U.S. equity markets by midday Tuesday, gains were narrow and tech-led, with defensives and retail lagging badly.
The S&P 500 rose 0.3% to 7,673, while the Dow Jones Industrial Average added 64 points, or 0.1%, to 53,481.
The Nasdaq 100 outperformed, climbing 0.7% to 29,214 as AI-linked names bounced from Monday's aggressive drawdown.
Within Magnificent Seven stocks, Nvidia Corp. (NVDA) rose 1.5% to $211.67 ahead of Wednesday's fiscal second-quarter report.
Gold was little changed, easing 0.2% to $4,644.92 an ounce, with silver down 0.5% at $68.62. Bitcoin (CRYPTO: BTC) briefly topped $80,000, and is now up 25% for the month.
Tuesday's Performance In Major US Indices
According to the market data platform:
- The Vanguard S&P 500 ETF (NYSE: VOO) rose 0.3%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA) edged up 0.1%.
- The Invesco QQQ Trust (NASDAQ: QQQ) climbed 0.7%.
- The iShares Russell 2000 ETF (NYSE: IWM) gained 0.2%.
Chip Stocks Rebound
Cheaper oil pulled inflation expectations lower and took the pressure off long-end yields ahead of Fed Chair Kevin Warsh's closely watched Jackson Hole speech on Friday.
Tech and chip stocks took the bid.
Super Micro Computer Inc. (SMCI) rallied 8.8% to $38.26, rebounding alongside the broader AI-server complex after Monday's rout.
Advanced Micro Devices Inc. (AMD) rose 4.8%, Marvell Technology Inc. (MRVL) added 5.2% and Micron Technology Inc. (MU) gained 2.0%.
Oklo Inc. (OKLO) climbed 8.4% to $43.02, riding a broad bid across AI-power names that pushed the Nuclear Energy Index up 4.9%. Bloom Energy Corp. (BE) rose 5.9% and IREN Ltd. (IREN) added 5.9% in the same trade.
The Technology Select Sector SPDR Fund (NYSE: XLK) led all sectors with a 0.9% gain, followed by the Communication Services Select Sector SPDR Fund (NYSE: XLC) at 0.5% and the Health Care Select Sector SPDR Fund (NYSE: XLV) at 0.4%.
Defensives and Energy Were a Drag
The Consumer Staples Select Sector SPDR Fund (NYSE: XLP) fell 1.2%, the worst performer of the session. The Energy Select Sector SPDR Fund (NYSE: XLE) slid 0.9% alongside the crude unwind. And the Materials Select Sector SPDR Fund (NYSE: XLB) eased 0.4%.
At the industry level, the iShares Biotechnology ETF (NASDAQ: IBB) topped the board with a 1.8% advance, followed by the VanEck Semiconductor ETF (NASDAQ: SMH) at 1.5% and the Invesco WilderHill Clean Energy ETF (NASDAQ: PBW) at 1.5%. The VanEck Gold Miners ETF (NYSE: GDX) and the SPDR S&P Metals & Mining ETF (NYSE: XME) each rose about 1.3%.
On the other side, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP) dropped 1.3%, the SPDR S&P Retail ETF (NYSE: XRT) fell 1.2%.
Dick's: The Session's Blow-Up
DICK'S Sporting Goods Inc. (DKS) cratered 28.1% to $128.95. The retailer reported second-quarter adjusted EPS of $3.53 on revenue of $5.59 billion, both short of consensus. It slashed full-year adjusted EPS guidance to $11.00-12.00 against a $14.20 Street estimate.
The company also cut its revenue outlook to $21.9-22.2 billion, down from the $22.35 billion expected, citing a more promotional environment in athletic footwear and a thinner product-launch calendar. Pro-forma comparable sales at the acquired Foot Locker business fell 3.6%.
The read-across gutted the athletic complex. Lululemon Athletica Inc. (LULU) fell 4.1% to $117.75 on the DICK'S promotional commentary.
Bath & Body Works Inc. (BBWI) slid 4.0% to $18.40, appearing to fall in sympathy with the retail complex ahead of its own second-quarter report Wednesday morning.
Albemarle Corp. (ALB) fell 5.2% to $134.15 as Chinese lithium carbonate futures dropped 2.2% on the session, extending a slide driven by elevated inventories and restarting supply.
On the upside, Moderna Inc. (MRNA) jumped 12.3% to $155.96, as the stock continued to whipsaw following the Aug. 19 Phase 3 readout showing its personalized cancer vaccine, imsimerane autogene, partnered with Merck, reduced melanoma recurrence.
Robinhood Markets Inc. (HOOD) gained 7.3% to $111.20 as Bitcoin briefly topped $81,000 on renewed spot ETF inflows, extending a run that has been the single biggest driver of the brokerage's revenue mix.
Tuesday's Russell 1000 Top Gainers
Tuesday's Russell 1000 Top Losers
