Chip Makers, Cruise Lines, Crypto Rally and Nvidia Recover $3 Trillion; Blue Chips, Small Caps Dip: What’s Driving Markets on Tuesday?

Technology stocks are poised to break a three-day losing streak on Tuesday, driven by a sharp rally in chipmakers, with Nvidia Corp. NVDA up more than 4% and recovering its $3 trillion valuation.

O VanEck Semiconductors ETF SMH rose 1.8% after falling more than 7% in the past three sessions, indicating a pick-up in risk-on sentiment toward AI-related stocks.

The tech-heavy Nasdaq 100 rose nearly 1%, outperforming other major indexes.

Sentiment remains weak in non-tech sectors. The S&P 500 rose just 0.1%, while the Dow Jones Industrial Average and Russell 2000 fell 0.9% and 0.6%, respectively.

Treasury yields saw slight increases after hawkish comments from the Fed Michelle Bowman, which did not rule out further rate hikes if improvements in inflation stall. O iShares 20+ Year Treasury Bond ETF The TLT fell 0.2%, while a trade-weighted measure of the US dollar rose 0.2%.

Commodities were mostly down, with gold and crude oil falling 0.5% and 1% respectively. Copper fell 1% and silver fell 2.2%.

Cryptocurrencies were the brightest spot on the market, recovering after several days of losses. Bitcoin BTC/USD rose 2.3%, targeting its strongest day in three weeks. The more speculative Dogecoin DOGE/USD rose nearly 7%, on track for its best performance in over a month.

Tuesday Performance in Major US Indices and ETFs

Updated at 12:30 p.m. ET

According to Benzinga Pro data:

• O SPDR S&P 500 ETF Fund SPY rose 0.1% to $543.11.
• O SPDR Dow Jones Industrial Average DIA fell 1% to $390.11.
• The technology heavy Invesco QQQ Trust (ARK: QQQ) was 0.8% higher at $477.71.
• Sectorally, the Technology Select Sector SPDR Fund XLK outperformed, up 1.4%, while the Real Estate Selection Sector SPDR Fund XLRE lagged behind, falling 1.7%.

Tuesday Stock Movers

• Carnival Corp. CCL led gains in the S&P 500, jumping more than 8% on better-than-expected gains and marking its fifth positive session in a row. This momentum lifted the pairs Royal Caribbean Cruises Ltd. RCL and Norwegian Cruise Line Holdings Ltd. NCLH at 3.6% and 5.8%, respectively.
• Online travel agencies also recorded gains, with Expedia Group Inc. EXPERIENCEAirbnb Inc. ABNB and Reservation Holdings Inc. BKNG rising 1.8%, 1.6% and 0.6% respectively.
• Crypto-linked stocks rose in reaction to Bitcoin’s rally. Marathon Digital Holdings Inc. MARA and Coinbase Global Inc. COIN rose 3.6% and 4.3%, respectively.
• Arm Holdings plc ARM soared 5% after Guggenheim raised its price target for the chipmaker to $169 from $110.
• TD Synnex Corp. SNX fell nearly 9% after missing earnings and revenue estimates last quarter.
• SolarEdge Technologies Inc. SEDG plunged more than 20% after some analysts reacted negatively following the company’s announcement of a private offering of US$300 million in convertible notes.

Read now: Electoral and tariff prospects in the US should threaten internationally exposed stocks, warns Goldman Sachs

Photo via Shutterstock.

Market news and data brought to you by Benzinga APIs

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source