The Nasdaq Composite increased by 0.9% on Tuesday, supported by a rebound in chip stocks following a significant selloff last week.
Nvidia shares rose 2% after the company revealed it acquired a stake in neocloud provider Nebius, drawing investor attention to AI infrastructure trends.
The S&P 500 and Dow Jones Industrial Average also advanced, gaining approximately 0.5% and 0.4% respectively.
In Asia, South Korea’s KOSPI climbed over 3%, propelled by semiconductor sector strength, while the MSCI Asia-Pacific index rebounded about 2.4%.
Market analyst Dave Rosenberg highlighted the return of dip buyers and bargain hunters after last week’s sharp declines in semiconductor stocks.
President Trump announced new 50% tariffs on various Canadian goods, including beer, milk, hockey sticks, and chemicals, effective in 30 days. Canadian oil imports remain exempt from these tariffs.
The tariff move intensifies trade tensions and could provoke retaliatory measures between the US and Canada.
Oil prices retreated slightly after approaching $90 per barrel for Brent crude amid escalating US-Iran tensions.
Investors are focusing on upcoming major tech earnings scheduled to begin Wednesday with Alphabet and Tesla. These reports are expected to shed light on corporate spending for AI infrastructure and influence market direction.
General Motors, Halliburton, and 3M released earnings on Tuesday, but the spotlight is on Big Tech companies later this week.
As of Tuesday morning, the Nasdaq was near 25,747, the S&P 500 around 7,483, and the Dow approximately 52,151.
