The Dow Jones Industrial Average and other major indexes ended Tuesday with significant gains of more than 1% each, as investors anticipate upcoming rate cuts following July inflation numbers. Both Palantir Technologies and Nvidia made new highs on the stock market today.
The Dow finished up 1.1%, or 483 points, and more than recovered Monday's 200-point drop. The 30-stock index tested its 21-day exponential moving average, finding support. The blue chip index is back above the 44,000 level after closing just below it Monday.
The S&P 500 climbed 1.1% and closed at an all-time high. The Nasdaq composite gained 1.4%, also ending the session at a record high on the stock market today. The Russell 2000 small-cap index fared even better than the large-cap indexes with its 3% leap.
Volume was lower on the Nasdaq exchange and higher on the New York Stock Exchange compared with Monday, in preliminary numbers.
On the Nasdaq, rising stocks edged out falling ones by more than 8-to-3. On the NYSE, winners topped losers by more than 4-to-1.
Palantir And Nvidia Show Dominance
Palantir Technologies picked up 2.4% and reached a new high on the heels of outstripping expectations for its second-quarter earnings report released Aug. 4.
Nvidia edged 0.6% higher and also hit a record high on the stock market today.
3:57 p.m. ET
IBD 50 Stock Movers: A Family Locating Stock Rallies
IBD 50 name Life360 spiked 12% after the family-tracking service and device maker reported a second-quarter profit of 8 cents per share, swinging from a loss of 15 cents a year ago. Its sales grew 36% to $115.4 million, which exceeded projections. It also raised its full-year 2025 revenue guidance.
Palantir Technologies progressed 2.2% after reporting outstanding earnings on Aug. 4, and reached a new high. Nvidia inched up 0.4% as it hovered near its all-time high.
On the downside, Axon Enterprise slid 6% and pulled back to its 50-day line, seeking support.
Stocks Run On Fed Bets, 7 New Buys; CoreWeave Tumbles Late
3:01 p.m. ET
Stock Market Today: Aerospace Tech Name Lifts Off
Mercury Systems rocketed more than 23% after the defense and aerospace technology provider crushed fiscal fourth-quarter profit and revenue views. Its earnings grew to 47 cents per share from 23 cents per share a year ago. And sales climbed nearly 10%. The stock reached the 20% profit zone from a flat base buy point of 54.32.
The positive report prompted several analysts to raise their price targets on the stock. But Raymond James took it a step further and upgraded the stock to a strong buy from outperform and raised its price target to 80 from 55.
AST SpaceMobile shot up despite its larger-than-expected second-quarter loss. The company is building a space-based cellular broadband network.
"We are confirming our fully-funded plan to deploy 45 to 60 satellites into orbit by 2026 to support continuous service in the U.S., Europe, Japan, and other strategic markets, including the U.S. Government," the earnings release stated.
Currently, it has six operational and one test satellite for both commercial and government applications.
2:21 p.m. ET
Airline Names Take Off, One Sinks
Airline stocks got a much-needed lift Tuesday, after July airfares reportedly rose 4% and gasoline prices fell.
In addition, airlines may see less competition as Spirit Airlines may cease operations due to a cash crunch while struggling to operate. Its parent company, Spirit Aviation Holdings, crashed 39% and was trading around 2.14.
In contrast, United Airlines soared 9.5% and is nearing the 100 price level.
American Airlines Group catapulted 10% higher but has been a laggard and lost around 26% so far this year. Shares remain below their 200-day line.
Delta Air Lines spring-boarded 8% and reclaimed its 200-day line.
Rounding it out was Southwest Airlines, with a smaller gain of nearly 5%. The stock is holding well below its 200-day line.
1:10 p.m. ET
Economic Data: Core Inflation Boosts Chance For Rate Cut
The July Bureau of Labor Statistics consumer price index rose 0.2% as expected and lagged the 0.3% June reading. The annual number came in light, at 2.7% vs. the 2.8% consensus and was unchanged from 2.7% in June.
The number without more volatile food and energy prices, often referred to as core inflation, rose 0.3% in July, meeting expectations but was higher than the 0.2% print in June. And the annual core reading of 3.1% exceeded the projected 3% and topped June's 2.9% reading.
The indexes rallied after the core annual inflation number came in higher-than-expected, pushing the odds for a quarter-point September rate cut to 94%, according to the CME Group FedWatch tool.
The Federal Reserve will focus on broad macro signals such as "labor market softness, consumer fatigue, and the risk that slowing growth could become deflationary over the medium term," Daniel Siluk, Janus Henderson Investors' head of global short duration and liquidity, said in a note. "This CPI print does not derail the case for a September cut, if anything, it supports it."
In other economic news, the National Federation of Independent Business Small Business Optimism Index rose to 100.3 in July vs. the 98.9 expected and topped June's 98.6
Stock Market Today: Health Care Name Tanks
Cardinal Health tumbled 7% in heavy trading, after the health care services provider missed fiscal fourth-quarter sales projections with higher earnings than views.
Cardinal also announced it agreed to purchase Solaris, a urology management services organization, in a cash-and-debt deal valued at around $2.4 billion. The stock fell below the flat base it had been in and found support at its 200-day line.
On Holding trimmed a larger gain to around 7.5% in heavy volume, after the Swiss footwear maker topped second-quarter sales views. It also raised its full-year 2025 revenue and gross margin forecasts. Investors seemed to disregard the unexpected quarterly loss caused by the exchange rates between a weakened U.S. dollar versus the Swiss franc.
The stock found resistance at its 50-day and 200-day moving averages. Shares have underperformed and have lost more than 9% so far this year and hold a weak 25 IBD Relative Strength Rating.
Tencent Music Entertainment gapped up around 12% in heavy volume. The move came after the China-based online music entertainment provider reported better-than-expected second-quarter profit and revenue.
Shares are well-extended from a long consolidation pattern with a 15.77 buy point, after breaking out in mid-May. Shares have more than doubled so far this year.
11:26 a.m. ET
ETFs On The Move, Bitcoin Prices Fall
Among exchange traded funds, the Invesco QQQ Trust moved up 0.7%, as did the SPDR S&P 500 ETF.
The 10-year Treasury yield bumped up to 4.29%. Oil prices fell to around $63.65 a barrel. Bitcoin edged lower to around $119,100 in recent action.
Circle Internet Pops On Earnings
Circle Internet Group trimmed larger morning gains to around 7.8% after the stablecoin issuer's second-quarter revenue topped estimates.
Shares tested their 21-day line, finding resistance. The stock started trading on June 5, with an offer price of 31 per share, and was trading around 173 recently.
Oklo wavered then picked up steam, rising more than 4%. The company reported a larger-than-expected second-quarter loss but the 18 cents per share loss was narrower than the loss of 27 cents per share in the year-earlier quarter.
Shares fell for four straight sessions after reaching an all-time high on Aug. 6. The nuclear technology stock is testing its 21-day exponential moving average, seeking support.
Oklo also announced a strategic collaboration with Lightbridge for a potential co-location of a Lightbridge fuel fabrication facility within Oklo's fuel manufacturing facility.
The initiative was spurred by President Donald Trump's Executive Order signed in May to "accelerate advanced nuclear technologies." Lightbridge stock rallied around 24% in heavy volume and is in an early-stage consolidation with a 17.70 buy point.
Sea Ltd. jumped 21% following the company's better-than-expected second-quarter earnings and sales results.
Shares reached the 172.65 buy point of a consolidation pattern and are trading in the buy zone up to 181.28. Shares retook their 50-day moving average. The Singapore-based company operates the largest e-commerce platform in Southeast Asia.
9:52 a.m. ET
Nasdaq-100 Movers: Starbucks, Meta, Marvell
Inside the Nasdaq-100 index, the biggest winners Tuesday morning were Starbucks, On Semiconductor, and Meta Platforms.
Starbucks stock climbed 3%, while On shares gained 2.5%. And Meta stock rallied 2.5% in morning action.
On the downside, Marvell Technology and Workday were among the biggest losers. Marvell shares sold off 2.5%, while Workday stock lost 1%.
8:36 a.m. ET
Stock Market Today: CPI Numbers Mixed
Early Tuesday, the Labor Department said the core CPI rose 0.3% on the month, meeting estimates, with a 3.1% year-over-year increase, slightly hotter than the 3% estimate. The CPI climbed 0.2% in July, in line with targets, with an annual increase of 2.7%, cooler than the 2.8% estimate.
7:59 a.m. ET
Tesla Stock To Extend Win Streak
New IBD Leaderboard stock Tesla raced 2.9% higher Monday, extending a win streak to four sessions. Tesla broke out over a trendline and its recent high of 338, placing the electric-vehicle giant in a new buy area.
Tesla stock added 0.5% Tuesday morning, moving closer to a conventional buy point at 367.71.
Earnings Movers: Circle, On Holding, Sea Ltd.
Elsewhere, key earnings movers included Cardinal Health, Circle Internet, On Holding, Sea Limited, and Tencent Music.
Cardinal shares tumbled 6% in early morning action, while Circle stock jumped 6.5%. On stock surged 12%, as Sea shares climbed nearly 9%. Finally, Tencent Music shares rallied 4.5% in premarket trading.
Stock Market Today: CPI Inflation Data Imminent
The Labor Department's July CPI inflation data is due out at 8:30 a.m. ET.
Tariffs so far haven't led to price spikes, but more are now in place. Consensus CPI estimates see a 0.2% increase for the month and a 2.8% rise year over year. Core CPI is seen up 0.3% on the month and 3% annually, Econoday says.
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