Nasdaq Leads Gains as Chip Stocks Bounce Back Before Big Tech Earnings

TLDR

• The Nasdaq rose 0.9% on Tuesday, led by a rebound in chip stocks after last week’s sharp selloff
• Nvidia climbed 2% after announcing it took a stake in neocloud provider Nebius
• South Korea’s KOSPI gained over 3%, driven by semiconductor strength in Asia
• President Trump announced new 50% tariffs on Canadian goods, set to take effect in 30 days
• Investors are watching Big Tech earnings this week, starting with Alphabet and Tesla on Wednesday

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US stocks moved higher on Tuesday as chip stocks bounced back from their worst week in over a year. The Nasdaq Composite rose 0.9%, the S&P 500 gained around 0.5%, and the Dow Jones Industrial Average added about 0.4%.

The rebound came after all three major indexes opened higher on Monday but ended the day in the red. Analyst Dave Rosenberg of Rosenberg Research pointed to “dip buyers and bargain hunters” returning to the market after semiconductor stocks sold off hard last week.

Nvidia shares were up 2% after the company disclosed it had taken a stake in neocloud provider Nebius. The move drew attention as investors look for signals on where AI infrastructure spending is heading.

In Asia, South Korea’s KOSPI Composite index gained more than 3%, with chipmakers among the biggest movers. The MSCI Asia-Pacific benchmark also rebounded by around 2.4%.

Bespoke Investment Group co-founder Paul Hickey noted there was no single clear catalyst for the move. “Earnings haven’t hurt,” he said.

Tariffs and Geopolitics Add Uncertainty

President Trump on Monday announced 50% tariffs on a range of Canadian goods, including beer, milk, hockey sticks, and chemicals. The tariffs are set to take effect in 30 days after the US accused Canada of unfair trading practices.

Canadian oil imports were exempt from the new tariffs. Oil prices edged lower on Tuesday after climbing toward $90 per barrel for Brent crude, driven by rising tensions in the US-Iran conflict.

The White House’s move risks sparking a fresh round of retaliatory trade measures between the two countries.

Eyes on Big Tech Earnings

Several companies reported results Tuesday, including General Motors, Halliburton, and 3M. But attention is building toward bigger names later in the week.

Alphabet and Tesla are set to report on Wednesday, kicking off what many expect to be a closely watched stretch of Magnificent Seven earnings. Investors are paying close attention to how much these companies are spending on AI infrastructure.

The results could either fuel a broader recovery or confirm that last week’s selloff has more room to run.

As of Tuesday morning, the Nasdaq stood at around 25,747, the S&P 500 at approximately 7,483, and the Dow at roughly 52,151.