All three major U.S. stock indexes posted record closing highs again on Tuesday as Nvidia shares gained following news it will build artificial intelligence supercomputers for the U.S. energy department, and as investors were optimistic about corporate earnings ahead of key results from megacaps this week. The TSX also gained, buoyed by tech stocks and a huge rally in shares of Cameco, but the index remains below the record high it set earlier this month.
“Momentum and earnings are pushing the market higher,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York, adding that there is also “enthusiasm about Trump’s Asian trip.”
“Earnings have been good,” he said. “Of course, we’re waiting for the big tech stocks.”
Trump lavished praise on Japan’s first female leader, Sanae Takaichi, in Tokyo on Tuesday. They signed a deal to bolster supplies of critical minerals and rare earths, as their nations seek to reduce China’s dominance of some areas of key electronic components.
Nvidia’s CEO, Jensen Huang, said the company will build seven supercomputers for the U.S. Department of Energy, and said the company has US$500 billion in bookings for its AI chips. Nvidia also announced new details with Finnish telecom equipment maker Nokia to target the AI communications market. Nvidia shares closed up nearly 5%.
Microsoft’s shares gained nearly 2% after the company reached a deal that allows OpenAI to restructure into a public benefit corporation while giving Microsoft a stake of 27% in the ChatGPT maker.
Key quarterly results are expected this week from Apple, Microsoft, Alphabet, Amazon, and Meta Platforms. Investors are anxious for details from the companies on AI spending.
The Dow Jones Industrial Average rose 161.78 points, or 0.34%, to 47,706.37, the S&P 500 rose 15.73 points, or 0.23%, to 6,890.89 and the Nasdaq Composite rose 190.04 points, or 0.80%, to 23,827.49.
Toronto’s S&P/TSX composite index closed up 143.92 points, or 0.48%, at 30,419.68.
The TSX technology sector rose 1.6%, helped by gains in Celestica, which jumped 7.3% after raising its 2025 revenue forecast, and an 8% rise in Dye & Durham, which late on Monday said the sale of its unit Credas is expected to close by January to help with debt reduction.
The biggest gainer in Toronto was Cameco, which jumped 22.9% after the announcement that the uranium supplier Westinghouse Electric and Brookfield Asset Management will build at least US$80 billion of new nuclear reactors across the United States in a partnership with the U.S. government.
The materials sector rose 0.8% even as gold prices retreated again. Energy shares fell 1.1% decline as oil prices tumbled nearly 2%.
Among other U.S. stocks, United Parcel Service shares rose 8% after it forecast fourth-quarter revenue above expectations. Rival FedEx also gained.
Third-quarter earnings for S&P 500 companies are estimated to have increased 10.5% from the year-ago period, up from earlier estimates for the quarter, according to LSEG data.
The Federal Reserve is widely expected to announce this week a cut in interest rates. Investors will be keen to get any details on the rate outlook, especially given that the U.S. government has been shut down for nearly a month, delaying crucial economic data and forcing traders to rely on private releases and corporate announcements. The Bank of Canada is also expected to announce a cut in its key lending rate this week.
In economic news Tuesday, a preliminary estimate of an ADP National Employment Report showed the U.S. economy added an average of 14,250 jobs in the four weeks ending October 11.
Reuters, Globe staff