The S&P 500 moved higher on Tuesday, supported by strong gains in health care and consumer stocks, which helped counter a decline in tech shares driven by weakness in Nvidia.
As of 12:47 p.m. ET (17:47 GMT), the Dow Jones Industrial Average rose 545 points, or 1.2%. The S&P 500 was up 0.7%, while the NASDAQ Composite added 0.4%.
Tech under pressure as Nvidia falls; Dell earnings ahead
Although the latest earnings season is nearing its end, several major companies are still reporting results. Dell Technologies is set to release earnings after the market close. The company almost doubled its profit growth target for the next four years in October, reflecting strong demand for its AI-focused servers used by clients such as CoreWeave and Elon Musk’s xAI.
Nvidia shares dropped after The Information reported that Google is in talks to supply Meta with AI chips in 2027 under a multibillion-dollar deal. The stock’s decline weighed heavily on the tech-heavy Nasdaq.
Retail stocks outperform on strong earnings
Retail names delivered standout performances.
- Abercrombie & Fitch surged after raising the lower end of its annual profit outlook, supported by strong demand for its Hollister clothing lines.
- Kohl’s also climbed after boosting its annual profit forecast for the second time this year.
- Best Buy gained following better-than-expected fiscal Q3 2026 results and an upgraded full-year outlook.
- Dick’s Sporting Goods jumped even after missing Q3 earnings expectations, as it raised its guidance for its core business.
Slowing retail sales add to rate-cut expectations
Market sentiment has been supported by recent dovish comments from several Federal Reserve officials. New York Fed President John Williams said the central bank could cut rates soon to support the labor market. His remarks were echoed by Christopher Waller and Mary Daly.
The Wall Street Journal reported that these policymakers have helped set the stage for Fed Chair Jerome Powell to push for a rate cut at the December 9–10 meeting. However, the decision is expected to face internal resistance, especially with limited updated economic data available after October’s delays.
U.S. retail sales increased 0.2% in September, slowing from 0.6% in August and missing expectations of 0.4%. The Commerce Department noted that the report had been postponed due to the 43-day government shutdown.
Analysts at Stifel said consumers remain steady but not strong, and see little urgency for additional policy easing before year-end. However, the odds of a December rate cut held near 80%, according to Investing.com’s Fed Rate Monitor Tool.
Investors now turn their attention to the PCE price index, the Fed’s preferred inflation measure, which will be released on Wednesday.
