After a dramatic Monday, when US stocks witnessed some sharp swings, the markets calmed down on Tuesday with the indices trading in the flat territory.
Tuesday seemed all about consolidating gains, watching data, and waiting.
The Dow Jones Industrial Average closed 34 points down at 47,706.51, while the S&P 500 index closed at 6,781.50, 0.21% down. The tech-heavy Nasdaq Composite index was slightly up at closing.
But inside that quiet market, one corner kept moving: semiconductors as AI-linked chip stocks outran the broader tape and gave investors something to work with on an otherwise cautious day.
Semis and AI names carry Wall Street
While the S&P 500 largely traded sideways, chipmakers did the heavy lifting.
Nvidia gained 1.2%, lifted by two developments that reinforced its position at the center of the AI infrastructure buildout.
The company announced an investment in Thinking Machines, an AI startup that has been building large-scale reasoning models, a deal that signals Nvidia is not just selling chips but actively embedding itself in the AI ecosystem.
Separately, reports suggest Nvidia may be preparing NemoClaw, an open-source AI agent platform that could debut at GTC 2026.
Intel was Tuesday’s biggest semiconductor story, jumping over 4% in the late morning session.
The move reflected compounding optimism: Panther Lake chips are now in the market following their January launch, and CEO Lip-Bu Tan has been signaling that external foundry customers are actively engaging with the process.
A foundry business means manufacturing chips for other companies, not just Intel’s own designs, a model that could dramatically improve Intel’s long-term margins if it gains traction.
Broadcom and AMD also posted gains, keeping the semiconductor complex in broadly positive territory.
Steady bond demand
Beneath the semiconductor action, Tuesday’s economic data told a calmer story, but not alarming either.
The NFIB Small Business Optimism Index came in at 99.3 for March, slightly below February’s 99.7 reading but a hair above the consensus estimate of 99.1.
The NFIB survey tracks how confident small business owners feel about the economy, things like hiring plans, expected sales, and credit availability.
The number signals that confidence is holding, but it is losing a little steam. Not a red flag, but worth watching over the next two prints.
The 3-Year Treasury Note auction settled at a yield of 3.518%, down from the prior auction’s 3.535%.
When yields come in lower at auction, it typically means demand from buyers was strong, investors were willing to accept a lower return to get their hands on government debt.
That is broadly a stabilizing signal for credit markets after Monday’s turbulence.
One number could reshape the narrative by Wednesday afternoon: the EIA crude oil inventory report.
The American Petroleum Institute reported a build of 5.6 million barrels late Tuesday, well above expectations, suggesting that the oil supply crunch markets feared after Monday’s Iran-driven selloff may be less severe than it looked.
If the official EIA numbers confirm that surplus, crude could pull back further, easing one layer of macro anxiety that has been shadowing equities since the week began.
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