The Dow Jones Industrial Average rose on Tuesday as a number of upbeat earnings reports and a drop in oil prices overshadowed recent pressure seen in the artificial intelligence trade.
The blue-chip index gained 618 points, or 1.2%, while the S&P 500 added 0.7%. The Nasdaq Composite traded up 0.6%.
Shares of industrial and safety products producer 3M offered a boost to the Dow, jumping more than 4% following better-than-expected earnings results and a full-year guidance raise. Shares of aerospace and defense companies Northrop Grumman and RTX also advanced 6% and 1%, respectively, after their respective earnings beats.
Meanwhile, oil prices pulled back from earlier gains, helping investor sentiment. U.S. West Texas Intermediate crude futures were last down more than 1% at around $102 per barrel, while Brent crude futures fell more than 2% to roughly $106 a barrel.
The market has been weighed down as of late by worries about the sustainability of the AI trade, as debt and demand concerns grow. In fact, sentiment in tech took a hit earlier in the day after Korean AI firm Elice tumbled more than 30% overnight in its public market debut. Asia-Pacific markets declined Tuesday, after U.S. stocks rose overnight, leading to declines in the South Korean market.
However, AI-related stocks staged a bit of a comeback as the session went on. Micron Technology, Intel and Sandisk all rose around 1%. Seagate Technology, and Advanced Micro Devices were up 2% and more than 1%, respectively. The VanEck Semiconductor ETF (SMH) added nearly 1%, while CoreWeave gained more than 2%.
The S&P 500 climbed 0.4% in regular trading on Monday, while the Nasdaq Composite advanced more than 1%. Nvidia added 1.4%, and Tesla jumped 3.8%. Alphabet shares advanced about 1%.
It marked a rebound from last week’s rout, which spilled over into the broader market, as concerns grew around companies borrowing too much money for their AI build-outs.
“Improving moods regarding the prospects of modern technology have Wall Street breathing a sigh of relief as participants drop hedges, after the cost of volatility protection soared intraday on Friday, ahead of the intensifying selloff,” wrote Jose Torres, senior economist at Interactive Brokers.
CoreWeave, which fell more than 25% last week, tried to recover some of that decline after a Goldman Sachs upgrade to buy. However, early gains fizzled and the stock closed slightly lower.
S&P 500, Nasdaq opens lower
The S&P 500 and Nasdaq Composite began Tuesday’s session in the red.
The broad market index fell 0.2% just after 9:30 a.m. ET, while the tech-heavy Nasdaq pulled back 0.4%. The Dow Jones Industrial Average traded around the flatline.
— Sean Conlon
CoreWeave credit seeing more signs of stress
Investor concerns over CoreWeave‘s credit ticked higher on Tuesday, with the spread on its five-year credit default swap rising back up near levels seen on Thursday.
The CDS, which is a way for buyers to pay for protection in case the borrower defaults, last saw spreads over 1,121, which is up 2.22% for the day and more than 17% over the past week. Spreads of 1,000 or greater are generally considered a sign of distress.
— Michelle Fox
Housing starts tumble in September as real estate woes continue
Housing starts slumped in September, raising fresh concerns about the state of the real estate market as the Federal Reserve contemplates additional interest rate hikes.
The Commerce Department reported Tuesday that privately owned starts totaled 1.22 million at a seasonally adjusted annualized rate. That was off 5.2% from the August level and well below the Dow Jones consensus for 1.3 million.
Additionally, single-family starts weakened, totaling 859,000, off 4.6% from the prior month.
Building permits issued during the month were slightly better than expected, totaling a seasonally adjusted annualized 1.4 million, against the estimate for 1.39 million. The total was 0.2% below August.
— Jeff Cox
RTX, Northrop Grumman and Steel Dynamics among the stocks making premarket moves
Check out the companies making headlines before the bell:
- RTX — The defense stock gained 1% after RTX posted third-quarter earnings of $2.26 per share, excluding items, on revenues of $24.97 billion. That exceeded the LSEG estimates of $1.78 earnings per share on revenue of $24.08 billion.
- Northrop Grumman — Shares gained 0.5% after the defense contractor reported mixed results for the third quarter. The company earned $7.89 per share, beating an LSEG estimate of $7.18 per share. However, revenue of $11.12 billion was just below the $11.14 billion consensus.
- Steel Dynamics — Shares dropped 5.3% after the industrial metals company reported mixed third-quarter numbers. While the company beat on revenue, its earnings per share and profit margin fell short of expectations. On a positive note, the company’s customer backlog is up 50% year over year, extending into 2027 as strong demand persists.
Read here for the full list.
— Sarah Min
General Motors shares fall after latest quarterly results
General Motors beat Wall Street’s expectations on the top- and bottom-lines as it reported its Q3 2026 earnings, delivering strong results driven by high truck sales and growing subscription revenue
The company raised its free cash flow expectations and narrowed its 2026 full-year guidance.
The Detroit automaker also announced a new multiyear stock buyback of $20 billion, but didn’t provide a specific timeframe for the repurchase.
“GM is performing well, and we are working hard to continue our momentum despite growing inflationary pressures through strategic investments in new products and services, and through improved quality and operating efficiency,” GM CEO Mary Barra said Tuesday in a letter to shareholders.
GM expects commodity inflation costs to be nearly $2 billion, which was the high end of its previous guidance. The automaker also said the costs of its pullback in all-electric vehicles announced last year were “substantially completed.”
GM stock was off roughly 7% during premarket trading despite the beats.
— Deena Zaidi
Elice tumbles 30% in Korean market debut
Korean AI firm Elice tumbled more than 30% overnight in its public market debut. Investors recently have been worried about the sustainability of the AI trade, as debt and demand concerns grow.
— Fred Imbert
Solstice rises on report of Starboard Value stake
Shares of Solstice Advanced Materials, which was spun off from Honeywell last year, rose more than 3% after The Financial Times reported, citing sources, that activist Starboard Value had built a stake in the company.
Starboard wants Solstice to cut about $100 million in corporate costs focus on its refrigerants and nuclear businesses, the report said. Solstice shares are up more than 24% year to date.
— Fred Imbert
Northrop Grumman rises on earnings beat
Northrop Grumman gained more than 1% after the defense contractor reported mixed results for the third quarter.
The company earned $7.89 per barrel, beating an LSEG estimate of $7.18 per share. However, revenue of $11.12 billion was just below the $11.14 billion consensus.
ABB CEO sees no slowdown in data center demand despite investor concerns
ABB CEO Morten Wierod told CNBC he sees no slowdown in the AI data center buildout in the coming years, despite investors becoming wary of ballooning AI spend.
The Swiss multinational firm declined around 6% on Tuesday, even after reporting record third-quarter orders, which jumped 40% to $12 billion, driven by a triple-digit increase in its data center segment.
“ABB without data centers, it is a double-digit growth when you look at the order intake,” Wierod told CNBC’s “Squawk Box Europe.”
“I believe there is a strong trend…you will see a continued build-out of the data center capacity in the coming years,” Wierod added.
South Koreas’ Kospi leads losses as Asia markets fall
Asia-Pacific markets closed in the red on Tuesday, with South Korean equities leading the losses.
The Kospi dropped 3.73% to end the day at 5,552.74. Index heavyweight SK Hynix and Samsung Electronics are down 4.23% and 2.98% respectively. The small-cap Kosdaq index fell more than 3% at 781.97.
Japan’s Nikkei 225 declined 1.3% to 64,075.42, while the Topix slid 1.43% to 4,009.21.
Australia’s S&P/ASX 200 fell 0.33% to 8,816.9.
— Lee Ying Shan
European stocks open lower as tech stocks fall
The pan-European Stoxx 600 was 0.3% lower in early trading, dragged down by losses in the tech sector.
By 8:25 a.m. in London (3:25 a.m. ET), the Stoxx Europe 600 Technology index was down by 1.4%.
Chip stocks fell, with ASML down 2.5%, ASMI down 3.3% and BE Semiconductor down 3.6%.
Tuesday’s moves marked the second consecutive day of broad losses in Europe, with the Stoxx 600 shedding 0.8% on Monday to snap a three-day winning streak.
— Chloe Taylor
UK wages grow faster than expected ahead of Bank of England interest rates decision
U.K. wages excluding bonuses grew by 3.7% year-on-year in the three months to August, official data showed on Tuesday, narrowly beating the 3.6% forecast by economists polled by Reuters.
The Office for National Statistics data comes ahead of an expected interest rate hike from the Bank of England next month.
The bank, which is set to hike its “base rate” by 25 basis points to 4%, is concerned that the Iran war energy price shock is driving broader inflation, including via wages.
BoE Governor Andrew Bailey said last week the longer the war goes on, the harder it will be for the BoE not to respond. But he also said it remains “early days” and inflation pressures remained “quite subdued.”
French stocks head for further declines after turmoil
France’s CAC 40 index is set to open lower on Tuesday, according to IG futures data, following a 1.1% decline on Monday.
The country’s stock market has severely lagged its European peers this year amid political volatility and social unrest over the cost of living and other issues, which boiled over into mass protests over the weekend.
Analysts told CNBC on Monday that French stocks were being harmed by higher government bond yields and the country’s widening spread over Germany, along with a downturn in luxury spending.
The U.K.’s FTSE 100, Germany’s DAX and Italy’s MIB were also seen opening in the red.
— Jenni Reid
Oil prices inch higher on Middle East worries
Oil prices rose Tuesday as Iran-backed Houthis escalate attacks against Saudi Arabia, raising concerns over potential supply disruptions in the Middle East.
Brent crude futures rose 0.14% to $109.70 per barrel, while U.S. West Texas Intermediate crude futures for November delivery gained 0.25% to $103.92 per barrel.
The Houthis claimed on Monday to have attacked King Khalid International Airport again; Abha International Airport in southwestern Saudi Arabia, close to Yemen; Saudi Aramco facilities in Yanbu on the Red Sea Coast; the Shaybah oilfield and Saudi naval forces.
Prospects of more Russian supplies hitting the market, however, kept a lid on prices.
U.S. President Donald Trump on Friday waived several Russia-related sanctions, allowing countries such as India to purchase energy from Moscow.
—Lee Ying Shan
BlackRock, GIC chase Indian telecom major Jio’s IPO as anchor bids top $26 billion
India’s Jio Platforms has seen the anchor investor quota for its initial public offering oversubscribed more than 30 times, according to a source familiar with the matter, drawing bids from top asset managers including BlackRock, Capital Group and GIC.
The country’s largest telecommunications and digital services company, backed by Meta and Google, plans to raise up to 302 billion rupees ($3.2 billion) through India’s largest ever IPO in rupee terms.
According to the source, who is not allowed to speak on the matter due to legal restrictions, the company’s anchor book received total bids worth 2.5 trillion rupees ($26.3 billion) for the 81.1 billion rupee anchor book portion.
Jio Platforms in a release on Monday said it had finalized the allocation of 72.47 million equity shares to anchor investors at 1,119 rupees a share, at the upper range of the price band.
The anchor book is a portion of the total fundraise set aside for large institutional investors before the IPO opens for public bidding.
— Priyanka Salve
Indonesia’s benchmark Jakarta Composite rebounds 3%
Indonesia’s benchmark Jakarta Composite Index rebounded 3% on Tuesday after the country’s stock exchange announced plans to remove companies with highly concentrated ownership from the index.
The move comes as authorities seek to address concerns raised by global index provider MSCI, and follow the index’s plunged to a six-year low in the previous session.
Indonesia seeks to avert a potential downgrade by MSCI to “standalone market” status, a classification reserved for markets that fall short of the accessibility, size or liquidity requirements of its broader indexes.
—Lee Ying Shan
Asian chip stocks slide as AI spending fears linger
Asian chip stocks fell Tuesday, bucking an overnight rebound in U.S. technology shares as concerns over the sustainability of artificial intelligence spending continued to weigh on sentiment.
South Korean memory chipmaker SK Hynix slid 4.07%, while Samsung Electronics lost 1.03%.
In Japan, tech investor SoftBank Group tumbled 4.46%, while chip equipment maker Tokyo Electron shed 1.45% and Renesas Electronics fell 1.49%.
The declines come as the tech-heavy Nasdaq Composite rebounded more than 1% on Monday, with U.S. chip giant Nvidia gaining 1.4%, Intel advancing 2%, Advanced Micro Devices and Micron adding adding 1.8% and about 3%, respectively.
— Lee Ying Shan
Japan’s Nikkei 225 and South Korea’s Kospi slide
Asia-Pacific markets opened in the red on Tuesday.
Japan’s Nikkei 225 declined 0.85%, while the Topix slid 0.56%. South Korea’s Kospi lost 2.20%, while the small-cap Kosdaq was down 1.03%.
Australia’s S&P/ASX 200 traded 0.84% lower.
—Lee Ying Shan
Asia-Pacific markets set to open subdued
Asia-Pacific markets were set to fall Tuesday, breaking ranks with Wall Street that rose as U.S. technology stocks rebounded from last week’s sharp sell-off.
Japan’s Nikkei 225 was poised to decline at open, with its Chicago futures contract last at 64,910, compared with the index’s previous close of 64,916.7.
Futures for Hong Kong’s Hang Seng index stood at 24,112 lower than the index’s last close of 24,186.83.
Australia’s S&P/ASX 200 was down 0.9% in early trade.
— Lee Ying Shan
Stocks are ready to move on from the AI rout. The credit market is not
AI stocks rallied on Monday, but CoreWeave closed slightly lower as investors remained skittish about its debt. Yields on Oracle debt also remained elevated as credit worries persist across the AI trade.
The tech-heavy Nasdaq Composite gained 1% on Monday. CoreWeave, the so-called neocloud company that led the sell-off last week, bounced around, hit a 52-week low and ultimately closed fractionally lower. Meanwhile, its bond yields remained high and its five-year credit default swaps were at distressed levels.
— Michelle Fox
