The tech-heavy Nasdaq Composite experienced a decline of 36.88 points, representing a decrease of 0.2%, ultimately closing at 22,953.67. The Dow Jones Industrial Average increased by 0.5%, equating to a rise of 218.16 points, concluding at 46,924.74. Eighteen components of the 30-stock index concluded in positive territory, whereas 12 finished in negative territory. The S&P 500 experienced a modest increase of 0.22 points, effectively maintaining its position at 6,735.35. Five of the 11 broad sectors of the benchmark index finished the day with gains. The Consumer Discretionary Select Sector SPDR advanced 1.2%, the Industrials Select Sector SPDR increased by 0.9%, and the Communication Services Select Sector SPDR rose 0.4%, while the Utilities Select Sector SPDR experienced a decline of 0.1%.

The fear gauge, as represented by the CBOE Volatility Index, experienced a decline of 2%, settling at 17.87. On Tuesday, 19.7 billion shares changed hands, which is below the 20-session average of 20.3 billion. On the NYSE, the ratio of advancers to decliners stood at 1.27-to-1, whereas on the Nasdaq, decliners slightly surpassed advancers with a ratio of 1.11-to-1. On Tuesday, investors assessed a robust set of corporate earnings while grappling with apprehensions regarding the durability of the recent rally. The Dow Jones Industrial Average experienced a modest increase, buoyed by positive earnings from various industrial and capital goods firms, whereas the S&P 500 remained nearly flat and the Nasdaq Composite declined, hindered by underperformance in a handful of large-cap technology stocks.

The day’s gains were driven largely by robust third-quarter earnings reports, which persistently indicate resilience in the broader U.S. economy, notwithstanding a deceleration in specific sectors. Firms within the manufacturing, construction equipment, and transportation sectors have demonstrated strong demand alongside profits that exceeded forecasts, indicative of ongoing business investment and infrastructure development. Companies such as General Motors Company, Lockheed Martin Corporation, and 3M Company surpassed earnings estimates and elevated their projections for the year. The positive outcomes strengthened cyclical stocks and contributed to the Dow’s superior performance. In the interim, investors exhibited a degree of caution regarding the technology sector, as certain high-valuation equities encountered slight profit-taking following their recent robust gains. Market participants are anticipating key reports from major tech firms later in the week, which are expected to provide additional insight into consumer and enterprise spending trends. Bond yields experienced a slight increase, with the 10-year Treasury yield positioned around 4.3%, as market participants reevaluated the Federal Reserve’s interest rate projections. Tuesday’s session underscored the shift from defensive to cyclical sectors, as industrials, materials, and certain consumer discretionary names garnered increased buying interest.

Consequently, shares of Amazon.com, Inc. and Howmet Aerospace Inc. increased by 2.6% and 2.4%, respectively. President Donald Trump adopted a conciliatory stance towards China on Tuesday, expressing his expectation of achieving a “fair and fantastic trade deal” with President Xi Jinping, contingent upon the advancement of discussions following their upcoming meeting. He also minimized concerns regarding a potential conflict over Taiwan, indicating that China “doesn’t want to do that,” which reflects a more conciliatory position following weeks of aggressive discourse. His remarks were broadly understood as a strategy to mitigate trade tensions and provide reassurance to global investors regarding U.S.-China relations. Markets exhibited a favorable reaction to Trump’s comments. Wall Street indexes experienced a modest uptick, driven by gains in cyclical and industrial stocks, as traders interpreted his remarks as indicative of a reduction in geopolitical tensions.