U.S. stocks advanced Tuesday as renewed buying in artificial-intelligence and semiconductor shares pushed the Nasdaq sharply higher while investors positioned for Wednesday’s Federal Reserve decision and another major round of technology earnings.
The S&P 500 rose 0.6% to 7,722.60, while the Nasdaq Composite gained 1.2% to 26,477.81. The Dow Jones Industrial Average edged up less than 0.1% to 52,377.57, while the Russell 2000 gained 1.2%.
Technology provided much of the market’s momentum. Broadcom advanced following a financing agreement that will expand Anthropic’s access to its AI chips, adding to renewed strength across the artificial-intelligence trade.
The advance remained relatively narrow, however. Most stocks inside the S&P 500 declined even as the capitalization-weighted index moved higher, highlighting the continuing influence of the largest technology companies.
Treasury yields were relatively stable as the Federal Reserve began its two-day policy meeting. Investors are now focused on Wednesday’s interest-rate decision and policymakers’ guidance about the path of monetary policy.
Corporate earnings also produced significant individual moves. Boeing fell sharply following its quarterly report, while JetBlue and Royal Caribbean advanced after releasing results.
Tuesday’s close leaves markets facing two major catalysts: the Federal Reserve’s policy announcement and another wave of earnings from some of the world’s largest technology companies.
The next test is whether those developments validate the renewed technology rally or expose the market’s continuing dependence on a relatively small group of AI-linked stocks.
