Dow Jones rises 659 points on Coca-Cola, Sherwin-Williams earnings

The Dow Jones Industrial Average climbed 659 points, or 1.3%, on Tuesday as strong earnings from Coca-Cola and Sherwin-Williams lifted blue-chip stocks while falling oil prices added support. The S&P 500 rose 0.3%, and the Nasdaq Composite finished little changed.

Sherwin-Williams stock surged 8% to pace the Dow after the paint maker topped second-quarter estimates. Coca-Cola stock climbed 5% after the beverage giant beat on both revenue and earnings and lifted its full-year guidance. Salesforce stock also gained 5%.

A broad rotation out of technology and into other sectors drove much of the day’s action. The Technology Select Sector SPDR Fund hit its lowest level since May 7, while the State Street Health Care Select Sector SPDR ETF and Financials ETF surged to record highs. Consumer-staples stocks led the S&P 500 with a 2.7% gain.

The VanEck Semiconductor ETF dropped more than 3%, marking a fourth straight session of losses for chip stocks. Micron shares declined roughly 8% and AMD shed 7%. A drop of nearly 6% in the PHLX semiconductor index pushed the Nasdaq-100 into correction territory at its session low, though the index recovered to close above that threshold, according to the Wall Street Journal. Software names provided a partial cushion, as Microsoft advanced nearly 2% and the iShares Expanded Tech-Software ETF added close to 2%.

Mounting anxiety over AI spending levels and China’s accelerating advances in the sector have pressured chip stocks, according to the Journal. The weakness extended across the Pacific, where South Korea’s Kospi finished down 10% and Japan’s Nikkei lost 4%.

Crude prices kept falling amid reports that Iran was in talks with Saudi Arabia and Oman over the Strait of Hormuz. West Texas Intermediate crude futures fell 5% to just above $78 per barrel, and Brent crude shed more than 6%.

Ross Mayfield, an investment strategist at Baird, described the trend as a sustained technical shift rather than a fundamental one. “This momentum unwind has been a story that’s been playing out for six to eight weeks now, and it has a lot more to do with the technicals of the market than any fundamental changes,” Mayfield told CNBC.

The Federal Reserve is set to announce its rate decision on Wednesday. Fed funds futures were pricing in a quarter-point rate increase in September, according to the CME FedWatch Tool.