Nasdaq leads Wall Street higher with Tesla, Alphabet earnings on deck Proactive uses images sourced from Shutterstock4:20pm: Chip rally lifts stocks

Wall Street finished sharply higher on Tuesday, with semiconductor stocks leading a broad-based rally despite fresh geopolitical and trade concerns.

The Nasdaq paced the gains, climbing 329 points, or 1.3%, to 25,837 as investors piled back into chipmakers after recent weakness. The S&P 500 rose 66 points, or 0.9%, to 7,509, while the Dow Jones added 385 points, or 0.7%, to close at 52,225.

Technology shares were the standout performers as optimism returned to the semiconductor sector, helping offset concerns over escalating tensions in the Middle East and new US tariffs targeting Canadian imports.

Investors appeared willing to look beyond the latest geopolitical headlines, instead focusing on a busy stretch of corporate earnings that could set the tone for markets through the rest of the week.

The spotlight now turns to Wednesday's earnings calendar, one of the busiest of the season. Before the opening bell, investors will hear from Philip Morris, GE Vernova and AT&T. After markets close, attention will shift to Big Tech, with Alphabet, Tesla and IBM all scheduled to report results.

3:40pm: Proactive news headlines

• Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) signed an exclusive global memorandum of understanding with Alstom to develop and commercialize graphene-based products for rail HVAC systems.
• Namibia Critical Metals (TSX-V:NMI, OTCQB:NMREF) secured approval for up to C$11 million in additional funding to advance the definitive feasibility study for its Lofdal Heavy Rare Earth Project and awarded key metallurgical contracts to SGS Canada.
• ReElement Technologies Corporation, majority-owned by American Resources Corp (NASDAQ:AREC), hired 13 new employees to support the commissioning and expansion of its rare earth refining operations in Indiana.
• Silver Range Resources Ltd (TSX-V:SNG, OTC:SLRRF, FRA:8SR) identified two gold-bearing feeder structures at its East Goldfield property in Nevada that it believes could become future drill targets following recent exploration and geophysical work.

2:30pm: Market movers

• Tesla Inc (NASDAQ:TSLA) said a summer software update will expand Grok AI voice controls to include tasks such as making phone calls, playing music and adjusting vehicle functions while adding self-driving statistics and smarter navigation features to the Tesla app.
• Magnolia Oil & Gas Corporation (NYSE:MGY) announced a $4 billion agreement to acquire WildFire Energy, a deal that will significantly expand its South Texas operations and more than double its footprint in the Giddings field.
• Utz Brands (NYSE:UTZ) agreed to be acquired by Germany's Intersnack Group in a $2.9 billion deal that will take the snack maker private through a $14.25 per share all-cash offer.
• Nebius Group NV (NASDAQ:NBIS) shares surged after Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) disclosed a 9.3% passive stake in the company, reflecting an existing investment that includes shares and prefunded warrants rather than new capital.
• Halliburton Company (NYSE:HAL, XETRA:HAL) reported second-quarter earnings that beat analyst expectations, but its shares fell after the company warned that the oilfield services market is weakening faster than anticipated.
• Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) signed an exclusive global memorandum of understanding with Alstom to develop and commercialize graphene-based products for rail HVAC systems.
• Hasbro Inc (NASDAQ:HAS) raised its full-year revenue and profit outlook after stronger-than-expected second-quarter results driven by record sales of its Magic: The Gathering trading card franchise.
• Namibia Critical Metals (TSX-V:NMI, OTCQB:NMREF) secured approval for up to C$11 million in additional funding to advance the definitive feasibility study for its Lofdal Heavy Rare Earth Project and awarded key metallurgical contracts to SGS Canada.
• 3M Co (NYSE:MMM) raised its full-year earnings guidance after reporting second-quarter earnings and revenue that exceeded Wall Street expectations.
• General Motors Company (NYSE:GM) increased its full-year 2026 profit forecast after reporting better-than-expected second-quarter earnings and revenue despite one-time charges related to its electric vehicle realignment.
• ReElement Technologies Corporation, majority-owned by American Resources Corp (NASDAQ:AREC), hired 13 new employees to support the commissioning and expansion of its rare earth refining operations in Indiana.

12:15pm: Tesla rolls out software updates

Tesla Inc (NASDAQ:TSLA) said it will roll out a new software update this summer that lets its Grok AI assistant make phone calls, play music, adjust cabin climate and open the glovebox by voice command.

The update also allows drivers to view and share self-driving statistics through Tesla's mobile app, and gives Navigation the ability to suggest routine destinations and prioritize routes drivers have previously taken.

Other features include the ability to set a desired arrival battery level from the app, upload custom vehicle wraps without a USB drive, and lock rear display controls from the front screen. Tesla's in-car Caraoke feature will add scoring and saved high scores.

11:00am: AI rally faces reality

Some analysts are wondering whether market expectations have already been pushed too high.

Linh Tran, Market Analyst at XS.com, believes what we’re seeing is “more than ordinary profit-taking.”

“With valuations already reflecting much of the optimism surrounding artificial intelligence, the market is no longer satisfied with earnings simply beating forecasts,” Tran wrote.

“Investors now expect companies to keep raising their revenue outlooks, preserve profit margins and prove that the enormous amount of capital being committed to AI infrastructure can generate adequate economic returns.”

Still, Tran believes the market’s long-term uptrend remains intact, but investors may face a more selective environment ahead. A measured pullback could be constructive by easing valuation concerns and setting the stage for a healthier continuation of the rally, the analyst added.

9:55am: Investors look past trade worries

Stocks opened higher Tuesday morning, with the Nasdaq leading the charge as chip stocks bounced back and investors digested a fresh batch of corporate earnings.

The Nasdaq climbed 0.7% to 25,687, while the S&P 500 gained 0.4% to 7,468 and the Dow Jones Industrial Average edged up 0.2% to 51,924.

Technology shares regained momentum after recent pressure on semiconductor names, helping to steady markets as investors look ahead to a busy stretch of earnings from major companies.

Corporate results offered another boost to sentiment. General Motors Company (NYSE:GM) reported stronger-than-expected second-quarter results, posting revenue of $48.03 billion versus the $46.61 billion expected by analysts. The automaker also delivered adjusted earnings per share of $3.57, ahead of the $3.19 consensus estimate, while adjusted EBIT came in at $3.94 billion compared with expectations of $3.7 billion.

Industrial giant 3M Co (NYSE:MMM) also topped forecasts, reporting second-quarter revenue of $6.5 billion and adjusted earnings per share of $2.40, ahead of estimates of $6.4 billion and $2.24, respectively. The company said adjusted operating margins improved to 24.9% and raised its full-year 2026 adjusted outlook.

Investors were also keeping an eye on the labour market after data from ADP showed private-sector hiring slowed for a fourth consecutive week. Employers added an average of 16,500 jobs per week in the four weeks through July 4, down from 24,250 three weeks earlier, suggesting some cooling in employment conditions.

Trade tensions remained in focus as US Treasury Secretary Scott Bessent defended the possibility of a 50% tariff on Canada, describing the move as “just reciprocity.”

“Any sustained dip-buying could help turn the tide and push the broader market to the upside,” said Paolo Broccardo, CEO at BankPro. “Strong earnings and resilient guidance could reinforce confidence in the sector, while any disappointment may revive selling pressure.”

8:30am: Fresh US-Canada trade tensions

Wall Street looks set for a stronger start on Tuesday, with technology stocks once again leading the way as investors prepare for another busy day of corporate earnings and keep a close eye on trade developments.

Ahead of the opening bell, Nasdaq futures were up 1.3%, while S&P 500 futures gained 0.4%. Dow Jones futures were more modestly higher, rising 0.2%.

Chip stocks were back in favor after another wave of buying in the sector. Nvidia ticked higher in pre-market trading after the AI chip giant disclosed it had taken a stake in neocloud provider Nebius, adding fresh momentum to a group that has been driving much of the market's gains this year.

Investors will also be digesting a new escalation in trade tensions. President Donald Trump announced a fresh round of 50% tariffs on a range of Canadian goods, including beer, hockey sticks, milk and chemicals, with the measures set to take effect in 30 days. The White House said the move was in response to what it described as discriminatory Canadian trade practices, raising the prospect of another round of retaliatory measures between the two countries.

One notable exception was Canadian crude oil, which was spared from the new tariffs. Oil prices eased slightly Tuesday morning after surging in recent sessions as renewed fighting involving Iran pushed Brent crude back toward the $90-a-barrel mark, its highest level since mid-June.

The earnings calendar also picks up pace before the market opens, with General Motors, Halliburton and 3M all scheduled to report quarterly results, helping set the tone ahead of this week's closely watched reports from several Big Tech heavyweights.