Stocks started slow Tuesday as the hangover from Monday's broad-market beating lingered. However, a buy-the-dip mentality quickly settled in, with all three main indexes boasting big gains by the time the closing bell rang.
Indeed, after suffering their biggest one-day drops in two years, the Dow Jones Industrial Average jumped 0.8% to 38,997 and the S&P 500 added 1% to 5,240. Not to be outdone, the Nasdaq Composite surged 1% to 16,366 on strength in several mega-cap stocks.
Nvidia (NVDA), for instance, jumped 3.8%, gaining $89 billion in market value along the way, as Wall Street brushed off rumors its Blackwell artificial intelligence (AI) chips may be delayed.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Even if the media reports are true, the impact will likely be minimal and short-lived, says Oppenheimer analyst Rick Schafer (Outperform, the equivalent of Buy). "NVDA's competitive position remains sound," he notes, adding that Nvidia is "best positioned in AI, benefiting from full stack [of] AI hardware/software solutions."
Meta pops in market rebound
Meta Platforms (META) was another Magnificent 7 stock that outperformed Tuesday, rising 3.9%. In an early morning note, Morgan Stanley analyst Brian Nowak (Overweight, the equivalent of Buy) warned that internet stocks are at risk if consumer spending slows, but says the Facebook parent is better-positioned to navigate such a scenario compared to its peers.
Nowak has a $575 price target on Meta, representing an implied upside of more than 16% to current levels.
Wall Street isn't worried about Google's antitrust ruling
Elsewhere in the mega-cap space, Alphabet (GOOGL) stock slipped 0.6% after falling more than 4% on Monday following a U.S. federal judge's ruling that Google unlawfully held a monopoly in search and text advertising.
Needham analyst Laura Martin (Buy) thinks the ruling will have a minimal near-term impact on the stock. "We believe consumers give Google Search its monopoly, so even without its exclusive contracts, consumers will download the Google app and its Search market share won't change materially," Martin says, adding that Alphabet remains "our top large-cap stock pick for 2024."
Palantir, Uber climb after earnings
Looking at the earnings calendar, Palantir Technologies (PLTR) stock rallied 10.4% after the data analytics provider beat top- and bottom-line expectations for its second quarter and raised its full-year revenue forecast.
"This was a game changer quarter for the Palantir story as the AIP [Artificial Intelligence Platform] monetization piece on U.S. commercial was front and center as a major growth driver," says Wedbush analyst Daniel Ives, who reiterated a Buy rating on PLTR stock after earnings.
In other earnings news, Uber Technologies (UBER) was one of the best S&P 500 stocks Tuesday, spiking 10.9% after the ride-hailing company topped expectations for its second quarter. It was also the sixth consecutive quarter that trip growth topped 20%.
Related content
- The Fed Is About to Cut Rates. What Should Investors Do?
- More Home Sellers Stuck With Capital Gains Tax Bills: What to Know
- Kiplinger's Economic Calendar for This Week
-
Heirs Inheriting Crypto? Don't Make It a Headache for ThemIf you have cryptocurrency in your estate, you'll need meticulous plans and clear instructions to ensure beneficiaries don't lose out after you're gone.
-
DIY Retirement Planning: A Smart Move or a Risky Endeavor?You can cut the cost of retirement planning by doing it yourself. But for something this important, it might be wiser to call in the professionals.
-
Galentine's Day: A Time to Promote Financial Literacy Among FriendsHere are three things women can do to help their friends gain financial knowledge and confidence.
-
Stock Market Today: Markets Turn Lower on Nasty Inflation SurpriseEquities sold off after a hot reading on consumer price inflation pushed back rate cuts to autumn or year-end.
-
CPI Report Puts the Kibosh on Rate Cuts: What the Experts Are Saying About InflationCPI Consumer price inflation reared its ugly head to start the year, dashing hopes for the Fed to lower borrowing costs anytime soon.
-
These Two Issues Are Critical to Efficient Retirement PlanningYou're saving hard for retirement, but if you're not thinking ahead about taxes and the cost of health care, your savings — and your legacy — could be at risk.
-
How to Use Good Debt (While Identifying and Avoiding Bad Debt)Not all debt is bad, but knowing the difference between good debt and bad debt and how to use them can help you get ahead financially and stay ahead.
-
Stock Market Today: Markets Reflect Elevated UncertaintyInvestors and traders as well as CEOs and central bankers continue to adjust to a new administration in Washington, D.C.
