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NextFin News - U.S. stocks rose Tuesday as technology led for a second straight session, with chipmakers rallying and oil prices sliding, while a sharp drop in Boeing kept the Dow nearly unchanged. The Nasdaq Composite gained 1.18%, the S&P 500 rose 0.60% and the Russell 2000 added 1.16%. The session’s central tension was between the growth-stock rebound and the cautious positioning ahead of the Federal Reserve’s decision, as the central bank began a two-day policy meeting. A strong consumer confidence reading and lower energy prices supported risk appetite.
The Dow Jones Industrial Average rose 0.03%
The S&P 500 Index rose 0.60%
The Nasdaq Composite advanced 1.18%
Stock & Sector Performance
Technology was the standout, with the S&P 500 tech sector up about 2% and industrials, consumer discretionary and materials also higher. Energy fell more than 2% as oil prices slipped, and refiners were among the day’s weakest names, with Valero down more than 7% at midday. Defensive sectors such as real estate and consumer staples lagged. Xylem fell about 12% at midday, while SoFi surged about 15%. The Nasdaq closed at 26,477.81, the S&P 500 at 7,722.60, the Dow at 52,377.57 and the Russell 2000 at 2,818.87.
Boeing was the day’s biggest laggard, falling 10.75% to close at $168.07, its lowest level since April 2025. Because the Dow is price-weighted, the move held the blue-chip index to a gain of just 15.99 points.
Hot Sectors to Watch
Semiconductors and AI infrastructure continued their rebound for a second day, helped by enthusiasm around Anthropic’s IPO filing, though this remains a relief rally in a market that sold off sharply last week. Energy is the clear loser from the day’s move. Oil’s slide helped inflation-sensitive sectors, and the Russell 2000’s 1.16% gain suggests investors are rotating back into growth and smaller companies as energy prices ease.
The Conference Board’s consumer confidence index also supported sentiment. It rose to 91.7 in October, up 7.5 points from September and well above the 81 forecast.
Major Story of the Day
Boeing’s third-quarter report was the dominant company story. The planemaker reported a core loss of $0.34 per share against a consensus loss near $0.20 to $0.25, on revenue of $24.19 billion, up 4% and above the roughly $23.8 billion to $24.4 billion expected. The net loss narrowed to $116 million from $5.34 billion a year earlier, and free cash flow was positive at about $500 million. The market focused on the outlook: Boeing said it was targeting a 737 Max production rate of 52 aircraft a month only in the second half of 2027, up from about 47 now, and cut its delivery target for the year. The commercial airplanes unit had a negative operating margin of 6.5%, and the stock fell the most since last April.
After-Hours Earnings Preview
The Federal Reserve announces its policy decision Wednesday, with markets expecting a hold and leaning toward a rate hike in December. Alphabet and Amazon, both major Anthropic partners, report later this week and will test whether AI capital spending is earning a return.
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