The S&P 500 climbed 0.9%, while the Nasdaq Composite added 1.4%. The Dow Jones Industrial Average rose 272 points, or 0.6%, News.Az reports, citing foreign media.
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Nvidia shares advanced more than 2% on the heels of Meta announcing Tuesday that it’s going to use millions of Nvidia’s chips in its data center buildout.
Additionally, fellow “Magnificent Seven” member Amazon moved higher by 2% after regulatory filings showed Bill Ackman’s Pershing Square grew its stake in the e-commerce giant by 65% during the fourth quarter. That makes Amazon the fund’s third-largest holding. The move comes after the stock snapped a nine-day losing streak.
Micron Technology also saw gains after David Tepper’s Appaloosa Management increased its holdings in the chipmaker. The stock was last up more than 5%.
While those stocks are bolstering the broader market, Stephen Lee of Logan Capital Management noted that “lesser-known” names in the tech space are also performing well, including those in industrial tech such as Trimble. Shares of that company were up 2% in the session.
“I’m not sure today is actually eliminating the broadening out thesis when we kind of peel the onion and look at relative winners,” he said, adding that the market is “becoming a little bit more discerning.”
Elsewhere, oil prices jumped as investors digested the latest developments between the U.S. and Iran. Vice President JD Vance said Tuesday that Iran failed to address U.S. red lines in this week’s nuclear talks and that military action is still a possibility.
Wall Street is coming off a muted session, with the major averages eking out small gains. The software sector, which has already been under pressure due to fears of disruption by artificial intelligence, fell during the session.
Traders are also watching for the minutes from the Fed’s January meeting. The next big catalyst this week, however, will likely be the personal consumption expenditure price index reading that’s due on Friday.
The PCE, the Fed’s preferred inflation gauge, will give further insight into the state of the economy. Markets are “likely in a semi-holding pattern” ahead of the report, especially as the artificial intelligence trade becomes increasingly difficult to navigate, according to Ameriprise chief market strategist Anthony Saglimbene.
