U.S. stocks closed higher Tuesday, with the S&P 500 up 0.9%, the Dow up 385 points and the Nasdaq up 1.3% as AI names extended a second-day rebound.
Micron surged 12.2% and Nvidia gained 2%, while stronger-than-expected results from 3M, Hasbro and General Motors added support and helped offset an 11% drop in Danaher.
Brent crude still settled at $91.01 after briefly nearing $92, up sharply from below $72 earlier this month as U.S.-Iran attacks continued.
That oil jump pushed the 10-year Treasury yield to 4.63% from 3.97% before the war, reinforcing worries that inflation could reaccelerate and keep pressure on rates.
Housing-linked shares showed that strain already: D.R. Horton slipped despite beating estimates, citing affordability concerns as mortgage rates sit near a one-year high.
As of mid-July 2026, the market is experiencing a strong and bullish period, with equities showing powerful gains throughout the year. This positive momentum is expected to continue, driven mainly by the artificial intelligence (AI) revolution, which has played a pivotal role in pushing stocks higher and helping them overcome various uncertainties. The strength of the AI sector remains a key factor in the market’s performance. Despite facing complex geopolitical challenges, the market has shown remarkable resilience, achieving gains even during events like the closure of the Strait of Hormuz. Overall, AI and robust earnings are fueling optimism for the months ahead.