US stocks opened higher on Tuesday as gains in chipmakers supported market sentiment, while easing oil prices offered some relief to investors ahead of a busy week of corporate earnings and the Federal Reserve’s interest-rate decision.
The S&P 500 gained 0.28% while the Dow Jones Industrial Average was up by 3 points.
The Nasdaq Composite advanced 0.54%.
Investors were assessing developments in the US-Iran conflict, which has contributed to volatility in energy markets, alongside the outlook for interest rates and the sustainability of spending on artificial intelligence infrastructure.
Chipmakers lead gains as AI optimism returns
Technology stocks extended their gains from the previous session, with investors continuing to assess the implications of Anthropic’s initial public offering filing.
Broadcom shares climbed more than 3% after a coalition of banks, including Bank of America, Citi and Morgan Stanley, alongside Blackstone, announced $63 billion in financing for the purchase of Broadcom’s technology for Anthropic.
Other semiconductor stocks also advanced. Micron Technology gained more than 1%, while Advanced Micro Devices rose 3% and Nvidia added around 1%.
The gains followed a strong session on Monday, when AI-related stocks rebounded after Anthropic disclosed its plans to go public on Nasdaq.
The filing has renewed investor interest in the AI sector, although the company also reported substantial losses and highlighted risks associated with developing advanced AI models.
Investors are now looking to upcoming earnings from major technology companies for evidence that their substantial AI investments are translating into revenue and profits.
Alphabet, Microsoft and Amazon are scheduled to report results later this week.
Jefferies expects earnings growth among the Magnificent Seven technology stocks to trail that of the remaining S&P 500 constituents, forecasting growth of 21% for the group compared with 32% for the rest of the benchmark.
Oil prices ease as investors await Fed decision
Oil prices declined for a second consecutive session, helping support appetite for riskier assets as investors monitored the possibility of de-escalation in the US-Iran conflict.
West Texas Intermediate crude futures fell 0.58% to around $101 a barrel, while Brent crude futures declined about 0.75% to $114.94 a barrel.
Despite the pullback, Brent remained near its highest level since late April.
The Federal Reserve began its two-day policy meeting on Tuesday, with markets widely expecting the central bank to leave interest rates unchanged on Wednesday following last month’s increase.
Investors will focus on the Fed’s policy statement and voting pattern for clues about the possibility of further rate increases.
Markets are pricing in at least two additional hikes by mid-2027 as inflation indicators remain elevated amid geopolitical tensions.
Traders are also monitoring durable goods orders, consumer confidence and new home sales data for further indications of the US economy’s condition.
Corporate earnings drive individual stock moves
Several companies reported quarterly results or updated their financial outlooks, contributing to moves in the session.
Coca-Cola shares edged down 0.49% even after the beverage company raised its annual profit forecast. PayPal gained 1.13% after increasing its full-year adjusted profit outlook.
Royal Caribbean advanced 7% after raising its full-year profit forecast, while UPS rose following better-than-expected third-quarter results.
JetBlue jumped more than 12% despite reporting a larger-than-expected quarterly loss, as the airline anticipated further margin expansion in the fourth quarter.
Whirlpool fell 2.8% after reporting a surprise quarterly loss and missing revenue expectations.
Elsewhere, Tesla shares rose more than 2%, extending gains from the previous session.
Meta slipped 1% after increasing its planned equity fundraising to $97.5 billion to finance its AI expansion.
Investors are also looking ahead to the November 3 US midterm elections, which will determine control of Congress.
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