U.S. equities closed higher on Tuesday, rebounding from a mixed start to the week as falling oil prices and Treasury yields provided support. The Dow Jones Industrial Average gained 0.30% to 53,577.40, extending modest gains from the prior session. The S&P 500 rose 0.32% to 7,677.28, while the tech-heavy Nasdaq 100 advanced 0.64% to 29,209.23, recovering from early-week declines.
Crude oil prices extended losses despite threats of new U.S. economic sanctions against Iran. A speech by U.S. Treasury Secretary Scott Bessent on Monday evening did not outline concrete measures to escalate pressure on Tehran, beyond existing warnings of a potential economic isolation. Analysts noted the absence of secondary sanctions targeting Iranian oil buyers, which had been floated as a possible step. "The far-reaching sanctions announced by President Trump fell short of expectations," said Carsten Fritsch, commodities analyst at Commerzbank.
Nvidia shares rebounded 2.2%, ending a multi-day losing streak ahead of its after-hours earnings report on Wednesday. The chipmaker, a bellwether for artificial intelligence demand, remains a key driver of the sector. Mark Malek, portfolio manager at Siebert, noted that Nvidia’s business is performing strongly, with operations running at peak levels. He expects positive results but warned of downside risk if the company disappoints. Other chip stocks also advanced, with AMD and Marvell Technology rising nearly 5% each.
Moderna surged 14%, extending volatility after reaching a 2023 high last week following positive clinical trial results for a melanoma vaccine. Analyst Alexandria Hammond of Wolfe Research upgraded the stock, citing the trial’s success as justification for reversing a previous negative stance. Merck & Co shares climbed 3.8%, hitting a record high, while partner Pfizer also posted gains.
In contrast, Dick’s Sporting Goods tumbled 31% after lowering its outlook due to weak performance at the acquired Foot Locker chain. The decline weighed on rival Nike, which fell 3.1% as the Dow’s worst performer.
