Chipmakers, Cruise Lines, Crypto Rally, Nvidia Reclaims $3 Trillion; Blue Chips, Small Caps Dip: What's Driving Markets Tuesday?

Tech stocks are poised to break a three-day losing streak on Tuesday, driven by a robust rally in chipmakers, with Nvidia Corp. NVDA rising over 4% and reclaiming its $3-trillion valuation.

The VanEck Semiconductor ETF SMH rose 1.8% after dropping over 7% in the last three sessions, indicating a resumption in risk sentiment toward artificial intelligence-related stocks.

The tech-heavy Nasdaq 100 advanced nearly 1%, outperforming other major indices.

Sentiment remains lackluster in non-tech sectors. The S&P 500 edged higher by only 0.1%, while the Dow Jones Industrial Average and the Russell 2000 fell 0.9% and 0.6%, respectively.

Treasury yields saw slight increases following hawkish comments from the Fed’s Michelle Bowman, who did not rule out further rate hikes if inflation improvements stall. The iShares 20+ Year Treasury Bond ETF TLT dipped 0.2%, while a trade-weighted measure of the U.S. dollar gained 0.2%.

Commodities mostly declined, with gold and crude oil down 0.5% and 1%, respectively. Copper fell 1%, and silver dropped 2.2%.

Cryptocurrencies were the brightest spot in the market, rebounding after several days of losses. Bitcoin BTC/USD rose 2.3%, aiming for its strongest day in three weeks. The more speculative Dogecoin DOGE/USD surged nearly 7%, on track for its best performance in over a month.

Tuesday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY was 0.1% higher to $543.11.
• The SPDR Dow Jones Industrial Average DIA was 1% lower to $390.11.
• The tech-heavy Invesco QQQ Trust (ARCA: QQQ) was 0.8% higher to $477.71.
• Sector-wise, the Technology Select Sector SPDR Fund XLK outperformed, up by 1.4%, while the Real Estate Select Sector SPDR Fund XLRE lagged, falling 1.7%.

Tuesday’s Stock Movers

• Carnival Corp. CCL led gains within the S&P 500, jumping over 8% on better-than-expected earnings and marking its fifth consecutive positive session. This boost lifted peers Royal Caribbean Cruises Ltd. RCL and Norwegian Cruise Line Holdings Ltd. NCLH by 3.6% and 5.8%, respectively.
• Online travel agencies also saw gains, with Expedia Group Inc. EXPE, Airbnb Inc. ABNB and Booking Holdings Inc. BKNG rising 1.8%, 1.6% and 0.6%, respectively.
• Crypto-linked stocks rallied in reactions to the Bitcoin rebound. Marathon Digital Holdings Inc. MARA and Coinbase Global Inc. COIN rose 3.6% and 4.3% respectively.
• Arm Holdings plc ARM soared 5% after Guggenheim raised its price target on the chipmaker from $110 to $169.
• TD Synnex Corp. SNX tumbled nearly 9% after missing both earnings and revenue estimates last quarter.
• SolarEdge Technologies Inc. SEDG plummeted over 20% after some analysts negatively reacted after the company's announcement of a private offering of $300 million in convertible notes.

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