Markets kicked off the holiday-shortened week with a broad rally on Tuesday, as investors found fresh optimism in signals that the U.S. and China may be edging closer to renewed trade talks. The S&P 500 climbed 1.4% to close at 5,612, while the tech-heavy Nasdaq surged 1.8% to 17,920 — its best single-day gain in nearly three weeks. The Dow added a more modest 0.9%, settling at 41,380.
Technology stocks led the advance, with Nvidia posting the session's standout performance — gaining 5.2% on the back of fresh reports suggesting hyperscale cloud providers are accelerating orders for next-generation AI chips. The move helped lift the broader semiconductor space, with peers like AMD and Broadcom also posting solid gains.
On the downside, CVS Health was the session's most notable casualty, dropping 6.1% after the pharmacy and insurance giant cut its full-year profit outlook. Management pointed to unexpectedly high medical cost ratios in its Aetna insurance arm, a recurring headache that has weighed on managed care stocks throughout 2026.
Gold remained elevated near $3,185 an ounce, suggesting investors haven't fully abandoned their defensive hedges despite today's risk-on tone. The VIX dipped to 22.4 but remains in territory that signals ongoing caution — Tuesday's rally was encouraging, but the market isn't out of the woods yet.