The Dow Jones Industrial Average extended its recent gains on Tuesday, climbing 537.24 points, or about 1.03%, to close at 52,747.32. This marked the index’s third consecutive day of increases, boosted by strong earnings reports from major companies like Sherwin-Williams and Coca-Cola, which rose 8% and 5% respectively after surpassing revenue and profit expectations. The broader market presented a mixed picture, with the S&P 500 gaining 0.21% while the tech-heavy Nasdaq Composite slightly declined by 0.22% amid ongoing weakness in semiconductor stocks.

The semiconductor sector faced continued pressure, with the VanEck Semiconductor ETF (SMH) dropping more than 3% and marking its fourth straight day of losses. Major chipmakers Micron and AMD each fell over 8%, contributing to a sell-off that has pushed the industry toward its worst month since 2008. This decline contrasts with the market rotation favoring more traditional sectors such as health care and financials, which hit record intraday highs. This shift reflects investor caution and a move away from high-flying tech stocks toward cyclical and rate-sensitive areas, provided oil prices and interest rates remain stable.

Oil prices retreated sharply on Tuesday, with West Texas Intermediate crude falling about 4% to $79.26 per barrel and Brent crude dropping 4.8% to $84.09, as diplomatic talks between Iran, Saudi Arabia, and Oman over the Strait of Hormuz tempered geopolitical risks. The easing in energy costs gave some support to the overall market, but analysts like Ross Mayfield of Baird say the sustainability of the rotation into consumer discretionary and financial sectors depends critically on stable oil prices and interest rates.

Investors are now turning their attention to the Federal Reserve’s upcoming rate decision, expected Wednesday, with the market widely anticipating a hold in rates but looking for guidance on the future path of monetary policy. This backdrop, combined with earnings reports from tech giants such as Apple— which briefly reached a $5 trillion market cap on Tuesday — Amazon, Meta, and Microsoft, will shape market direction in the days ahead as traders weigh company fundamentals against broader economic signals.