Nasdaq jumps as tech stocks revive, GM and 3M deliver earnings beats
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.