US stock market buoyed by cyclical stocks as investors await Fed signal

Cyclical stocks helped keep the US market upright on Tuesday, lifting the Dow Jones by 1.03% to 52,747 points and the S&P 500 by 0.21% to 7,428 points, while the Nasdaq slipped 0.22% to 24,876. Government bonds rose for a third straight day as oil prices fell following a de‑escalation of tensions in the Middle East, with the 10‑year yield at 4.602% and the 30‑year at 5.095%.

The artificial‑intelligence narrative was hit after Nvidia shares dropped 5% when the Wall Street Journal reported the company was discussing a roughly $250 billion funding plan for a massive data‑center project linked to OpenAI. Competition from China added pressure, highlighted by Moonshot AI’s Kimi K3 model, the Shanghai debut of memory‑chip maker CXMT, and advances in domestic deep‑ultraviolet lithography equipment.

Investors remain cautious on the tech sector and micro‑chip manufacturers, which may record their worst month since 2008. Attention now turns to upcoming earnings from the “Magnificent Seven” — Microsoft, Meta Platforms, Apple, Amazon and Alphabet — that will shape expectations for capital spending across the sector. The Federal Reserve’s policy signal expected on Wednesday is also a key focus.