US stocks opened higher Tuesday, with the Nasdaq Composite hitting its intraday high.
The Nasdaq Composite hit its all-time high of 27,250 after the market opened. The S&P 500 was up 0.06% while the Dow Jones was down by 0.05%.
Monday’s rally was driven by the AI trade.
The Dow gained 366.19 points, or 0.71%, the S&P 500 rose 1.49%, and the Nasdaq climbed 2.26% to that fresh record close, its first since June.
Oil slide tempers inflation fears
Oil extended its decline Tuesday after reports that Iran had offered to reopen the Strait of Hormuz, a development that would ease concern over crude shipments and broader energy inflation.
The prospect of renewed flows through the waterway, alongside Saudi Arabia’s efforts to restore its East-West pipeline network, has reduced the immediate supply-risk premium in crude markets.
Lower oil prices are supporting equities, since they could ease inflation pressure and reduce the need for further aggressive monetary tightening.
Treasury yields ease alongside oil
Bond markets moved in tandem with crude.
The 10-year Treasury yield fell more than 4 basis points to 4.951% on Monday, while the 30-year yield eased to 5.284%, both tracking oil’s decline as investors recalibrated inflation expectations following the Federal Reserve’s rate hike last week, its first since 2023.
Still, not everyone is convinced the relief will last. “Higher-for-longer energy prices add to the case for further tightening,” Ed Yardeni, president of Yardeni Research, wrote in a Monday note, a reminder that a single day’s pullback in crude hasn’t fully settled the market’s broader rate debate.
Energy remains the best-performing S&P 500 sector so far in 2026, even after Tuesday’s crude slide, underscoring how much of this year’s market story has been shaped by the same Iran-driven volatility now showing tentative signs of easing.
Chip shares cool after Monday’s surge
Technology stocks faced early profit-taking after outsized gains the previous session.
Nvidia and AMD gained while Intel fell.
AMD and Intel were among Monday’s strongest performers, with Intel popping 12% and AMD gaining about 10% and briefly crossing a $1 trillion market cap.
Qualcomm rose more than 9% the same day.
Meta also opened in the green after rising more than 11% on Monday, its biggest one-day percentage gain since April 2025, on optimism around its Muse AI agent.
Movers widen beyond AI
Paramount Skydance gained 6% after the company settled its lawsuit with US states to move forward with its Warner Bros merger.
Elsewhere, Vicor shares surged 12% in trading after the company raised its third-quarter revenue growth guidance to over 20%, up from an earlier 10% forecast.
GameStop rose more than 4% after CEO Ryan Cohen disclosed a purchase of 1.2 million shares.
What comes next
The market’s next directional test is whether falling oil can keep Treasury yields contained while AI shares consolidate after Monday’s powerful advance.
With yields still hovering near 4.947%, volatility risk remains elevated even as Tuesday’s early tone stayed positive.
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