Nasdaq 100 Climbs as Tesla Extends Rally, Nvidia Earnings in Focus

S&P 500 and Nasdaq Erase Losses as Wall Street Shrugs Off Geopolitical Concerns

The S&P 500 and Nasdaq Composite traded higher in the afternoon session Tuesday, rebounding from earlier losses as investors set aside geopolitical concerns linked to the Ukraine-Russia conflict. Gains in technology and retail stocks, led by Nvidia and Walmart, helped stabilize the market after initial declines triggered by rising tensions in Eastern Europe.

Indexes and Sector Overview

The Nasdaq Composite rose sharply, bolstered by a 3% gain in Nvidia ahead of its closely watched earnings report on Wednesday. The S&P 500 also moved higher, with strength in consumer discretionary and technology stocks offsetting weakness in industrials and energy. Meanwhile, the Dow Jones Industrial Average hovered near the flatline, weighed down by losses in select retail and industrial names.

Early pressure on the market stemmed from overnight developments, including Russian President Vladimir Putin’s warning that nuclear thresholds had been lowered following the U.S. decision to allow Ukraine to strike Russian territory. Reports of U.S.-made missile attacks on Russian border regions added to the cautious sentiment before the market turned higher in the afternoon.

Stocks Making Headlines

Tesla continued its strong momentum, climbing 2% to extend its month-to-date rally to 38%, putting the electric vehicle giant on track for its best month since January 2023. Walmart gained nearly 5% after surpassing earnings expectations and raising its outlook, driven by robust e-commerce growth and discretionary spending.

On the downside, Lowe’s fell over 3% after issuing a downbeat 2024 sales forecast, overshadowing its better-than-expected third-quarter results. Kraft Heinz slipped 1% after being downgraded by Piper Sandler, which cited challenges in reversing retail sales declines and uncertainties tied to political factors.

Among smaller stocks, Symbotic surged 26.2% after reporting stronger-than-expected fourth-quarter revenue and issuing upbeat guidance. Super Micro Computer rallied 29% as it moved to replace its auditor and comply with Nasdaq listing requirements. However, tax filing giants Intuit and H&R Block fell sharply, losing 5.4% and 7.4%, respectively, after reports of potential government-backed competition in the tax filing space.

Treasuries, Gold, and Volatility

Safe-haven assets gained as geopolitical concerns briefly rattled markets earlier in the session. Treasury prices rose, pushing yields lower, while gold futures edged higher. The Cboe Volatility Index (VIX), Wall Street’s “fear gauge,” spiked to 16 before retreating as the broader market recovered.

Market Outlook

As the session progresses, investors are likely to focus on upcoming earnings, including Nvidia’s report, which could set the tone for technology stocks in the days ahead. While geopolitical risks remain a concern, the underlying strength in tech and retail sectors suggests the S&P 500 and Nasdaq could extend gains into the close. Traders should remain cautious, however, as headlines from Ukraine or other macroeconomic developments may still drive late-session volatility.