Stocks Break Losing Streak as Chip Rally and Earnings Beats Offset Iran Tensions

U.S. stocks rallied Tuesday, snapping a three-day losing streak, as strong corporate earnings and semiconductor strength outweighed lingering concern over the Iran conflict. The Dow Jones Industrial Average rose 385.38 points, or 0.74%, to close at 52,224.64. The S&P 500 advanced 0.89% to 7,509.20, while the Nasdaq Composite gained 1.29% to 25,837.21, led by chipmakers including Micron, which surged 12%.

Earnings drove much of the optimism. 3M jumped more than 7% after posting better-than-expected second-quarter results, while General Motors rose nearly 5% on a top- and bottom-line beat. Industrial and energy shares led sector gains, while communications and consumer defensive stocks lagged.

Commodities and rates reflected the ongoing Middle East tension: Brent crude closed at $91.01 a barrel and WTI at $84.91, both their highest finish since June. The 10-year Treasury yield touched a two-month high of 4.64% amid expectations of further Fed rate increases, a dynamic worth watching for energy and industrial holdings.