Stocks with large market capitalizations led broad gains on Tuesday as investors focused on artificial intelligence-related names and shunned some consumer-facing equities.
Advanced Micro Devices rose 3.45% after Raymond James upgraded the chipmaker, citing strong growth prospects in AI servers. Dell climbed 3.88%, extending gains tied to AI infrastructure demand. Arm Holdings added 1.77% on continued investor interest in semiconductor exposure.
The gains contrasted with a sharp decline in Dick's Sporting Goods, which fell 25.75% after the retailer posted weaker-than-expected quarterly results and cut its full-year outlook. The drop erased roughly $1.8 billion in market value.
Biotechnology stocks also featured prominently among movers. Moderna surged 10.25% following an upgrade from Wolfe Research, which pointed to positive trial data for one of its experimental treatments. The biotech sector broadly benefited from renewed risk appetite, with Generate Biomedicines up 16.65% and AbCellera Biologics gaining 13.29%.
Among other notable moves, Madison Air Solutions advanced 11.21% on strong quarterly results, while Albemarle declined 5.13% after reporting lower lithium prices weighed on margins. Semtech rose 3.28% despite a mixed earnings report.
Smaller-cap stocks showed volatility, with Pacific Biosciences up 18.36% and Sizzle Acquisition gaining 17.14%. Digital Power Corp led decliners in the segment, falling 22.78% after missing revenue targets. Evolution Metals Tech dropped 9.26% amid commodity price pressures.
The day's trading highlighted a bifurcated market, where AI-linked equities outperformed while traditional consumer and industrial names lagged.
