S&P 500 gains, Dow Jones hits record highs, while Nasdaq slips as Wall Street closes on a positive note

Wall Street ended Tuesday on an upbeat note as U.S. stocks broadly advanced, recovering from last week’s decline. The S&P 500 and Dow Jones posted gains, while the Nasdaq edged lower. The S&P 500 rose 0.2%, rebounding from early losses amid heightened market volatility following Monday’s sharp recovery from the prior week’s slump.

The Dow Jones Industrial Average surged 559 points, or 1.2%, to a new record high, surpassing its previous peak from two weeks ago. In contrast, the Nasdaq Composite fell 0.3%, weighed down by renewed pressure on Nvidia as concerns persisted that AI-related stocks remain overvalued.

Paramount Skydance helped drive the market higher, jumping despite reporting quarterly earnings and revenue below Wall Street expectations. FedEx followed closely, climbing 5.4% after raising its profit outlook for the current quarter, now anticipating growth through the holiday season rather than just the summer. Their gains helped lift the S&P 500 to within 0.6% of its recent record high, offsetting Nvidia’s 3% decline. CoreWeave dropped 16.3% despite posting a smaller-than-expected quarterly loss.

Among other movers, BigBear.ai gained 6.1% after beating analysts’ forecasts and announcing a $250 million acquisition of AskSage, a generative AI platform serving national-security and other regulated sectors. By the close, the S&P 500 had added 14.18 points to 6,846.61, the Dow Jones jumped 559.33 points to 47,927.96, and the Nasdaq slipped 58.87 points to 23,468.30.