Stock Market Update
The stock market experienced a surge on Tuesday, with the S&P 500 adding 0.5% and hovering around its record high set in late December. The Dow Jones Industrial Average rose 395 points, or 0.8%, after setting a record on Monday. The Nasdaq composite also rose 0.5% as of 12:38 p.m. Eastern.
Big Tech Companies Lead the Way
Big tech companies were among the most notable movers in the market. Amazon, one of the most valuable companies in the world, surged 3.8%. This helped counter losses elsewhere in the market, including a 1.6% loss from Apple. Micron Technology rose 6.5%, also helping to lift the market. Nvidia, which is often a major force behind the market’s direction, wavered throughout the day and was up 0.7%.
Artificial Intelligence Drives Market Gains
Technology companies, especially those focused on artificial intelligence, are being closely watched this week during the industry’s annual CES trade show in Las Vegas. Sandisk surged 24.3% for the market’s biggest gain, driven by artificial intelligence and the resulting demand for data-storage hardware. Western Digital rose 15.6%. AI advances have propelled the broader market to a series of records in 2025, and investors will be watching companies for any updates that could shed more light on big corporate investments in AI technology.
Other Market Trends
The price of benchmark U.S. crude oil fell 1%, pulling back from sharp gains a day prior when the market reacted to U.S. forces capturing Venezuelan President Nicolás Maduro in a weekend raid. Treasury yields rose in the bond market, with the yield on the 10-year Treasury climbing to 4.18% from 4.15% late Monday. Gold prices rose 1% and silver prices rose 5.4%, as these assets are often considered safe havens in times of geopolitical turmoil.
Global Markets and Upcoming Reports
Markets in Europe and Asia gained ground. Outside of company announcements, Wall Street is preparing for several updates on the U.S. labor market this week, along with reports on the services sector and consumer sentiment. These reports will help paint a clearer picture of how vital parts of the economy closed out 2025 and the direction they could take in 2026. The U.S. government will release its report on job openings for November on Wednesday, followed by weekly unemployment data on Thursday and the broader monthly employment report for December on Friday.
Federal Reserve Watch
The Fed will be analyzing all of the upcoming data ahead of its next meeting in late January. The central bank cut its benchmark interest rate three times late in 2025 to try and counter the economic impact of a softer jobs market. Wall Street expects the Fed to hold interest rates steady at its January meeting, as cutting rates also risks fueling inflation at a time when it remains stubbornly above the Fed’s 2% target.
Conclusion
In conclusion, the stock market experienced a surge on Tuesday, led by big tech companies and driven by artificial intelligence. The market is closely watching the CES trade show and upcoming reports on the labor market and consumer sentiment. The Fed will be analyzing all of the data ahead of its next meeting in late January, and Wall Street expects interest rates to remain steady. As the market continues to evolve, investors will be keeping a close eye on the latest developments and updates from the world of technology and finance.
