The technology and AI trade dominated the market narrative on Tuesday, with major chipmakers jumping higher on increased optimism and other market catalysts.
- Marvell Technology shares gained nearly 6% at close after the company announced a higher long-term revenue target at its Investor Day.
- Advanced Micro Devices stock jumped nearly 3% higher after Citi raised its price target to $800 from $575 and maintained a ‘Buy’ rating on the shares.
- Meanwhile, Google and Constellation Energy agreed to a 20-year deal to add 890 MW of nuclear capacity to the PJM grid, backed by $4.3 billion in new investment.
U.S. stock futures were mixed in the overnight session late on Tuesday, shortly after the S&P 500 and the Nasdaq index clocked fresh highs during regular trading hours.
As of 10:16 p.m. EDT, Dow futures were down about 0.08%, while Nasdaq-100 futures fell 0.14%. The S&P 500 futures gained 0.03%.
On Tuesday, all three benchmark indexes closed higher. The S&P 500 led the climb, hitting an all-time high during trading hours and ending the session 0.58% higher. The Dow Jones Industrial Average rose 0.49% at close, while the Nasdaq Composite gained 0.45%.
| Index | Move | Close |
| Dow Jones Industrial Average | 0.49% | 51,521.28 |
| S&P 500 | 0.58% | S&P 500 |
| Nasdaq Composite | 0.45% | 27,599.89 |
Key US Market Drivers
The technology and AI trade dominated the market narrative on Tuesday, with major chipmakers jumping higher on increased optimism and other market catalysts.
Marvell Technology Inc. (MRVL) gained nearly 6% at close after the company announced a higher long-term revenue target at its Investor Day.
Advanced Micro Devices Inc. (AMD) jumped nearly 3% higher after Citi raised its price target to $800 from $575 and maintained a ‘Buy’ rating on the shares, citing gains from personal AI agents. Meanwhile, Broadcom Inc. (AVGO) rose more than 3% at close, while Nvidia Corp. (NVDA) also closed in the green and notched a record high.
Market commentator The Kobeissi Letter said in a post on X that “Nvidia is in a league of its own,” after noting that the chip stock now accounts for 5.21% of the MSCI All Country World Index (ACWI), near the highest level on record, with Nvidia’s weight now even larger than Japan’s weight of 5.16%, the world’s 3rd-largest stock market.
Meanwhile, Alphabet Inc.’s (GOOG, GOOGL) Google and Constellation Energy (CEG) agreed to a 20-year deal to add 890 megawatts (MW) of nuclear capacity to the PJM grid, backed by $4.3 billion in new investment, pushing all nuclear stocks higher in sympathy.
Van Eek Funds CEO, Jan van Eck, said in an interview with CNBC that while the nuclear energy trade has “really been suffering” of late, “maybe we've seen the bottom here with the Constellation deal.”
U.S. long-dated Treasury yields caught a break on Tuesday, sliding marginally lower from multi-decade highs. At the time of writing, the 10-year U.S. Treasury yield was trading at 5.307%, and the 30-year Treasury bond yield was trading at 5.681%.
President Donald Trump told reporters on Tuesday that the U.S. is doing “extremely well” in its conflict with Iran. Trump claimed that Iran’s military has been severely weakened and hinted that a decision on ending the conflict could come soon.
“But we have to finish up, and it’s only a question of which way do we want to do it: the nice way or the not-so-nice way? And pretty soon you’ll find out,” he added.
Meanwhile, oil prices edged higher, continuing to trade over $100 a barrel. At the time of writing, Brent crude futures expiring in December were trading at $101.54 a barrel, while WTI crude futures expiring in November traded at $90.35 per barrel.
On the economic front, markets will watch the U.S. Federal Open Market Committee (FOMC) meeting minutes, scheduled for release on Wednesday.
Trending Stocks To Watch
SpaceX (SPCX): Shares of Elon Musk’s rocket company fell about 2% in the overnight session on Tuesday after reports that the company is seeking $40 billion in financing, including $10 billion in bank loans and $30 billion in investment-grade debt, to fund Nvidia chip purchases for its AI buildout.
Netlist Inc. (NLST): The memory-chip company’s shares soared nearly 18% in the overnight session after it said Micron Technology (MU) has agreed to pay $600 million to license its patents and end their court fight.
Penguin Solutions Inc. (PENG): The company’s shares closed higher and surged more than 6% in the overnight session late on Tuesday after it reported record fiscal Q4 2026 results, with sales rising 68% year-over-year to $567 million and AI infrastructure and integrated memory accounting for 78% of quarterly sales.
Western Digital Corp. (WDC): Shares plunged nearly 7% at close and continued to decline in the overnight session after Bloomberg reported that rival Seagate is competing with Toshiba to buy TDK’s hard-drive magnetic heads business.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) was trading higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Invesco QQQ Trust (QQQ) declined at the time of writing.
The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.40% amid ‘bullish’ sentiment.
Asian markets opened mixed on Wednesday. South Korea's KOSPI and Japan’s Nikkei 225 were trading in the red at the time of writing. However, China’s SSE Composite and Australian stocks were trading higher at the open.
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