The S&P 500 rose on Tuesday as enthusiasm surrounding chipmakers led traders to move into the names for another day. Investors also monitored a slide in oil prices and parsed through a slew of corporate earnings as the Federal Reserve began its two-day policy meeting.
The broad market index was up 0.7%, while the Dow Jones Industrial Average added 107 points, or 0.2%. The Nasdaq Composite gained 1.3%.
Shares of Broadcom climbed more than 3% on the heels of a coalition of banks — namely, Bank of America, Citi and Morgan Stanley — and Blackstone announcing $63 billion in financing for the purchase of Broadcom's technology for Anthropic. Other chipmakers rose in sympathy. Micron Technology was up more than 1%, while Advanced Micro Devices advanced nearly 3%.
The latest moves in those stocks add to their gains from the prior trading day, which saw the major averages record a winning session, thanks in part to a boost in artificial intelligence-related stocks after Anthropic filed to go public at the Nasdaq. This would mark another major tech IPO for 2026, following SpaceX's blockbuster listing in June.
"The market has these kind of periodic interludes where it gets concerned about AI spending, and then we tend to go back and tech leads us higher," said Jed Ellerbroek, Argent Capital Management portfolio manager. "The light switch has been off for the last two weeks, and it looks like the first two days this week, the switch has been flipped up again."