S&P 500 Inches Up as Oil Prices Drop and Bond Yields Fall

The S&P 500 rose slightly Tuesday as falling oil prices and Treasury yields eased market concerns, with chip stocks boosting the Nasdaq Composite ahead of Nvidia's earnings report.

The broader S&P 500 gained 0.2%, the Nasdaq advanced 0.5%, and the Dow Jones Industrial Average added 59 points or 0.1%, according to CNBC. The benchmark 10-year Treasury yield dropped to 4.658%, extending a two-day decline.

Oil prices fell over 3%, with Brent crude dropping 3.5% to $87.39, helping to calm inflation worries and support stocks and bonds as reported by AP News. This decline came despite rising tensions between the U.S. and Iran, following new U.S. sanctions.

Shares of Nvidia rose more than 1%, snapping a seven-day losing streak ahead of its earnings due Wednesday. Semiconductor companies Advanced Micro Devices and Micron Technology also gained 4% and 2%, respectively, CNBC reported.

Consumer stocks lagged, with Dick's Sporting Goods plummeting over 29% after disappointing quarterly results. Walmart and Target shares also fell 1% and 4%, respectively, pressured by a weaker-than-expected consumer confidence index and escalating U.S.-Canada trade tensions.

"So far, corporate conference calls have talked about a resilient consumer, so while the vibes may be sour, the spending has held up — and spending, not sentiment, is what shows up in corporate earnings," said Bret Kenwell, eToro US investment analyst. He added that upcoming GDP and inflation data would provide further economic insight.

Canada announced retaliatory tariffs against the U.S. affecting roughly $20 billion in goods, with levies ranging from 15% to 50% targeting sectors such as steel, aluminum, dairy, and seafood. This move matches U.S. tariffs imposed over the weekend, according to Canada's Minister of Internal Trade Dominic LeBlanc.

Market breadth was weak, with only 180 S&P 500 stocks advancing by late morning. Information technology and health care sectors led gains, while consumer staples and energy underperformed.

JPMorgan analysts expressed optimism about SpaceX’s AI initiatives, highlighting the acquisition of Cursor and improvements in its AI model Grok. The firm maintained an overweight rating on SpaceX with a price target implying a 77.7% increase by December 2027.

Profit margins at AI computing firm CoreWeave are expected to rise significantly throughout 2026, with adjusted operating margins forecasted to increase from 1% in Q1 to 15% by Q4, according to Freedom Capital Markets.