Stocks extended their winning streak on Tuesday, with all three major U.S. indexes closing in the green for a third straight session. Investors remained laser-focused on trade negotiations underway in London between U.S. and Chinese officials, hoping for signs of progress that could ease tensions between the world’s two largest economies.
The S&P 500 and Nasdaq Composite both gained 0.6%, while the Dow Jones Industrial Average inched up 0.3%. These modest but steady gains pushed the S&P and Nasdaq to their highest closing levels since February.
Behind the rally is a growing sense of optimism that President Trump may soften his stance on tariffs. Combine that with stronger-than-expected corporate earnings and reassuring economic data, and it’s clear why investor sentiment has turned bullish. Just two months ago, the S&P 500 was down 15% for the year—now it’s within 1.7% of its all-time high.
Markets this week are particularly tuned into U.S.-China trade talks, where officials are reportedly tackling not only tariff disputes but also restrictions on exports of rare earth minerals and semiconductors—key components in everything from smartphones to electric vehicles.
Adding to the anticipation is the release of the May Consumer Price Index (CPI) data on Wednesday morning. Investors are eager to see if tariffs are filtering through to inflation, potentially shaping the Federal Reserve’s next move on interest rates.
Tesla stole the spotlight on Tuesday, with shares jumping 5.7%, extending a rebound that began earlier this week after last week's sharp sell-off. That slump had been triggered by a high-profile clash between CEO Elon Musk and President Trump. Now, attention has shifted to Tesla’s highly anticipated launch of its Robotaxi service in Austin later this week, which has reignited investor excitement.
Other tech heavyweights also enjoyed gains. Alphabet (GOOG) and Meta Platforms (META) both rose more than 1%, while Apple (AAPL) bounced back 0.6% after slipping on Monday following a lukewarm reaction to its presentations at the Worldwide Developers Conference. Nvidia (NVDA) added 1%, Broadcom (AVGO) and Amazon (AMZN) saw modest increases, while Microsoft (MSFT) was the only mega-cap to end in the red, down 0.4%, snapping an eight-day winning streak.
Chipmakers were another bright spot, boosted by hopes that trade talks could ease export controls. Intel (INTC) soared nearly 8%, leading all S&P 500 gainers, while ON Semiconductor (ON), Micron (MU), and Lam Research (LCRX) each added around 3%. The PHLX Semiconductor Index climbed 2% on the day, reflecting renewed optimism in the sector.
Energy stocks also made solid gains. Oilfield service giants Halliburton (HAL) and Schlumberger (SLB) rose 3.5% and 4%, respectively. Oil producers like APA Corp. (APA) and EOG Resources (EOG) climbed more than 3%. These stock gains came despite a dip in crude prices—West Texas Intermediate fell 0.8% to $64.75 per barrel in late trading, after touching $66.30 earlier, its highest since early April.
Gold slipped 0.3% to $3,345 an ounce, a modest move amid reduced safe-haven demand as investor confidence picked up.
Bitcoin was also in focus, trading around $109,800 in the afternoon after dipping near $108,500 earlier in the day. The world’s most popular cryptocurrency is now approaching its record high of just under $112,000, set on May 22. With ETF flows steady and regulatory noise quieting down, crypto bulls are once again charging.
Bond yields saw little movement, with the 10-year Treasury slipping slightly to 4.47% from 4.48% on Monday. Meanwhile, the U.S. dollar index ticked up 0.1% to 99.05, indicating mild strength in the greenback.
All in all, the market finds itself in a curious state—rising steadily on hope, yet still sensitive to the next headline or data point. For individual investors, it’s a balancing act. If you’re someone holding tech-heavy ETFs in your retirement portfolio, this week’s gains probably feel like a breath of fresh air. But keep in mind, any hiccup in the trade talks or a surprise in the inflation data could trigger sudden swings.
On the flip side, for long-term investors looking to build or add to positions, short-term volatility might offer opportunity rather than risk.
This current rally feels less like euphoria and more like cautious optimism. As talks continue and CPI numbers roll out, the market will be watching closely. One thing is certain: the next few days will be anything but boring on Wall Street.