The Nasdaq led Wall Street higher on Tuesday, with the index climbing 0.59% to 29,276 as a rally in chipmakers set the pace ahead of Nvidia’s results.
The S&P 500 added 0.32% to 7,677.28, and the Dow Jones Industrial Average rose 160.24 points, or 0.3%, to 53,577.40, its third straight winning session.
The move started with oil. West Texas Intermediate crude fell more than 3% and Brent dropped below $90, as hopes grew that shipments through the Strait of Hormuz could resume.
Iran and Oman are reportedly discussing a temporary framework while a report that the US would pull diplomats from some Middle East embassies eased fears the conflict is about to widen.
Cheaper oil matters well beyond the pump. It cools inflation worries, and that let Treasuries rally: the 10-year yield fell more than 7 basis points to 4.625%, a second straight day of declines.
When yields fall, future company profits are worth more in today’s money and the Nasdaq, packed with high-growth names whose value sits years out, benefits the most. It is the same machine that drove the tape the other way last week, simply running in reverse.
Monday’s slide in yields was helped by a report that the Treasury could tap its roughly $1 trillion cash account to fund bond buybacks, part of its effort to hold down long-dated yields. Once again, the bond market is steering the stock market.
Chip stocks did the heavy lifting. Nvidia rose about 2%, snapping a seven-day losing streak, as traders positioned ahead of its results after Wednesday’s close. Advanced Micro Devices jumped 4.9% and Micron added 2.5%, and the Nasdaq 100 outperformed the main benchmarks.
Not everything was rosy. Consumer names took a beating: Dick’s Sporting Goods cratered about 30%, its worst day on record after disappointing results, dragging other retailers with it, as Target fell nearly 4% and Walmart slipped 1%.
The mood was already fragile. Consumer confidence edged lower in August to 89.4, below the 90.2 economists expected and the weakest reading since the start of the year, with households growing more downbeat about the months ahead.
Adding to the unease, Canada said it would match President Trump’s new 50% tariffs “dollar for dollar,” escalating a trade fight with a major partner.
Still, some strategists urged calm. eToro’s Bret Kenwell noted that company earnings calls keep describing a resilient consumer and it is spending, not sentiment, that shows up in profits.
Markets can look past a sour mood, he argued; what they cannot look past is a consumer who actually stops spending.
Nasdaq 100 (NQ) Technical Outlook
Nasdaq 100 (NQ) Four-Hour Chart, August 25, 2026
Source: TradingView
Nasdaq futures spent the session clawing back Monday’s chip-driven flush, recovering off the 29,200 area to challenge the 100-period moving average near 29,369 into the close as the chip bid returned.
Price is trying to reclaim that average after it capped the market on the way down; the recurring 29,264.75 pivot sits just beneath as first support, with the 200-period MA around 29,634 the bigger ceiling above.
RSI lifted back into the mid-40s as the bounce built.
▪ Support: 29,264.75 pivot, then the 29,200 session-low area — a break there reopens 28,900.
▪ Resistance: 29,369 (100-MA); a clean hold above is needed to turn momentum back up, then 29,680 (200-MA).
What Comes Next
A busy day ahead tomorrow with NVIDIA earnings taking center stage.
There is also PCE data and GDP revision numbers to be released, both of which could have a significant impact on volatility ahead of the earnings call AMC.
The question for traders now is whether markets will experience calm ahead of the NVIDIA storm or will we get a volatile U.S. session on Wednesday?
