Wall Street Rises on Strong Earnings, Tech Stocks Lead Gains

U.S. stock markets delivered a mixed performance on Tuesday, buoyed by robust corporate earnings and a rally in technology shares. The S&P 500 climbed 0.5%, reaching its highest level in two weeks, while the tech-heavy Nasdaq 100 advanced 0.9%, marking its strongest close in nearly three months. In contrast, the Dow Jones Industrial Average slipped 0.9%, reflecting uneven momentum across sectors.

Tech and AI Stocks Drive the Upswing

Chipmakers and artificial intelligence infrastructure companies spearheaded the rally. Micron Technology surged 5% after unveiling plans to invest $24 billion in Singapore to expand its memory chip production capacity. Fourth-quarter earnings reports added further fuel to the upward trend, even as consumer confidence in January fell to its lowest level in more than 11 years.

Political and Trade Pressures Loom

Despite the upbeat tone, markets remain under pressure from political and trade uncertainties. President Donald Trump threatened to impose a 100% tariff on Canadian imports, raising concerns about escalating trade tensions. Meanwhile, fears of a partial government shutdown resurfaced amid disputes over funding for the Department of Homeland Security and ICE, following a tragic shooting incident in Minnesota. Additional anxieties stem from ongoing issues in Greenland and disruptions caused by a massive winter storm across the U.S.

The Federal Reserve also adds to the uncertainty, with expectations that it will keep interest rates unchanged this week—a move likely to draw fresh criticism from Trump.

Mixed Economic Signals

Economic data painted a complex picture. Figures from ADP showed private-sector employment rising by 7,750 jobs per week in the four weeks ending January 3, the weakest pace in six weeks. On the housing front, the S&P/Case-Shiller Composite-20 Home Price Index rose 1.39% year-over-year in November, beating forecasts.

However, consumer confidence plunged by 9.7 points to 84.5, its lowest reading in over a decade. The Richmond Fed’s manufacturing index edged up by one point to -6, still below expectations.

Overall, Wall Street’s gains highlight the strength of corporate earnings and technology stocks, but persistent political risks and fragile consumer sentiment continue to cast shadows over the outlook.