Stocks finished mostly higher as broad earnings-driven strength and another sharp decline in oil prices helped offset continued weakness across semiconductor stocks. The S&P 500 gained 0.2%, while the Nasdaq Composite slipped 0.2% and the DJIA climbed 1.0%.

The latest round of earnings reports drove buying across much of the market, with seven S&P 500 sectors finishing higher. The health care sector (+2.4%) led the advance behind a strong post-earnings gain in IQVIA (IQV 243.31, +30.09, +14.11%), while the consumer staples sector (+2.0%) also outperformed as Coca-Cola (KO 88.27, +4.20, +5.00%) traded higher following its quarterly results. Similarily, the materials sector remained among the session's leaders after Sherwin-Williams (SHW 354.27, +27.00, +8.25%) rallied on a better-than-expected earnings report.

Meanwhile, the communication services (+1.6%) drew support from Alphabet (GOOG 332.60, +6.03, +1.85%), which extended its rebound from last week's post-earnings selloff.

The broader market also remained stronger than the headline indices suggested, with the S&P 500 Equal Weight Index (+1.1%) outperforming its market-cap-weighted counterpart despite another difficult session for semiconductor stocks.

The information technology sector fell 1.2% as the PHLX Semiconductor Index tumbled 4.5%, extending its month-to-date decline to nearly 23%. Memory stocks remained under pressure ahead of SK hynix Inc.'s (SKHY 130.17, -12.85, -8.98%) earnings report Wednesday morning, with investors looking for additional insight into AI-driven HBM demand, memory pricing trends, and the broader outlook for the group.

Outside of semiconductors, however, weakness was relatively contained. The Vanguard Mega Cap Growth ETF slipped just 0.1% as Alphabet continued to recover from last week's post-earnings decline, while Apple (AAPL 340.08, +3.17, +0.94%) climbed to another record high and Microsoft (MSFT 393.35, +4.25, +1.09%)) also advanced ahead of their quarterly reports later this week.

Meanwhile, the energy sector (-1.4%) posted the market's largest decline as crude oil prices continued to retreat. Reuters reported that Oman presented Iran with a proposal for voluntary transit fees through the Strait of Hormuz that has the backing of Gulf states, while a separate Reuters report said China held direct discussions with the Houthis regarding safe passage through the Red Sea. Those developments helped send WTI crude futures down $3.33 (-4.0%) to settle at $79.32 per barrel.

Attention now turns to Wednesday's FOMC policy decision, with the CME FedWatch Tool currently implying a 31.5% probability of a rate hike. Investors will also be watching SK hynix's earnings before the open as it has been a focal point of recent volatility across the semiconductor space, followed by another busy slate of large-cap technology earnings later this week, for additional insight into AI demand and the broader corporate earnings outlook.

U.S. Treasuries climbed again on Tuesday, making for the third consecutive day of gains after most tenors set fresh 2026 lows late last week. The 2-year note yield settled down four basis points to 4.28%, and the 10-year note yield settled down four basis points to 4.60%. 

• Russell 2000: +19.0% YTD
• S&P Mid Cap 400: +14.9% YTD
• DJIA: +9.8% YTD
• S&P 500: +8.5% YTD
• Nasdaq Composite: +7.0% YTD

Reviewing today's data:

• June Adv. Intl. Trade in Goods -$101.5 bln; Prior was revised to -$105.9 bln from -$105.8 bln
• June Adv. Retail Inventories 0.0%; Prior was revised to 0.5% from 0.6%
• June Adv. Wholesale Inventories 0.3%; Prior 0.3%
• May FHFA Housing Price Index 0.3% (Briefing.com consensus 0.0%); Prior -0.1%
• May S&P Case-Shiller Home Price Index 1.6% (Briefing.com consensus 1.3%); Prior was revised to 1.2% from 1.1%
• July Consumer Confidence 90.8 (Briefing.com consensus 92.1); Prior was revised to 92.2 from 91.2
  • The key takeaway from the report is that consumers don't appear to be overly enthused about current business conditions or future business conditions.