The broad market S&P 500 gained 0.39% to end at 5,469.30, while the Nasdaq gained 1.26% and closed at 17,717.65
A rebound in Nvidia shares led the S&P 500 and Nasdaq Composite higher on Tuesday, a day after a sell-off in the chipmaking giant.
The broad market S&P 500 gained 0.39% to end at 5,469.30, while the Nasdaq gained 1.26% and closed at 17,717.65. Both indexes ended three days of declines. The Dow Jones Industrial Average lagged, declining 299.05 points, or 0.76%, ending at 39,112.16.
Nvidia shares added nearly 6.7%. During the previous session, the stock declined more than 6% to mark its biggest one-day drop since April 19, when it shed 10%.
Several large-cap tech names also rose after suffering declines on Monday. Meta Platforms and Alphabet gained more than 2% each.
Tuesday’s action marked a reversal from the previous session. On Monday, Nvidia’s decline weighed on fellow AI beneficiaries Super Micro Computer and Qualcomm, and the Nasdaq ended lower by more than 1% for its worst day since April.
As investors rotated away from chips Monday, they turned toward banks and energy plays. This intermarket shift led to the Dow closing higher by more than 260 points.
The recent pullback in Nvidia and other tech names is likely a short-term correction, said Chris Zaccarelli, CIO at Independent Advisor Alliance.
Tech is again leading the way, and Nvidia is being bought off the dip, he added. This year is still all about tech and artificial intelligence — maybe a little bit of profit taking over the last few days. Clearly valuations are pretty high. But the AI rally has a lot more substance than the dot-com bubble. All the stocks doing well have strong earnings.
He added: The investor remains confident that the bull market will continue heading into the fall, noting that “AI has replaced rate cuts in terms of kind of keeping the bull market moving forward.”
