Stock Market Today: Dow Soars to Record High on Strong Corporate Earnings, Tech Stocks Drag Nasdaq Lower
Stocks were mixed on Tuesday as investors sifted juggled a flood of major corporate earnings reports and weighed fresh developments in trade and monetary policy. The Dow Jones Industrial Average (DJI) surged 0.6% to a record intraday high near 47,000, driven by strong results from industrial and consumer giants. The S&P 500 (GSPC) rose 0.1%, hovering just below its all-time high, while the Nasdaq Composite (IXIC) slipped 0.1% as weakness in mega-cap tech names offset broader market strength.
Market Movers:
- General Motors (GM) +16% — GM surged after the automaker raised its full-year profit outlook and posted stronger-than-expected third-quarter earnings. The company cited resilient North American demand and early success in its electric vehicle ramp-up, easing concerns about consumer weakness in auto sales.
- Coca-Cola (KO) +4% — Coca-Cola shares popped after the beverage giant beat earnings estimates and raised its full-year guidance. The company reported broad-based volume growth across all regions, with particular strength in emerging markets and the energy drink category.
- Halliburton (HAL) +10% — Halliburton shares rallied after the oilfield services company beat expectations on both revenue and earnings per share, helped by robust international demand and new data center energy partnerships. CEO Jeff Miller said AI-driven power demand represents a “new era of growth” for the company.
- Warner Bros. Discovery (WBD) +10% — Shares jumped after the company announced it is reviewing “strategic alternatives,” including potential breakup or sale options, following unsolicited interest from multiple buyers. The move fueled speculation of major consolidation in the media sector.
- Alphabet (GOOG) -2% — Alphabet declined after OpenAI teased the release of a new web browser that could compete directly with Google Chrome. The announcement revived concerns about Google’s position in the AI tools race, even as the company has made gains with its Gemini platform.
Dow Extends Record Run
The Dow Jones Industrial Average hit another all-time high on Tuesday, bolstered by earnings strength from blue-chip components. Solid results from GM, Coca-Cola, and 3M highlight ongoing resilience in the industrial and consumer sectors, even as investors brace for a wave of tech results later in the week.
Traders said the rotation into value and industrial names reflects growing confidence in corporate America’s ability to navigate higher-for-longer interest rates. While inflation remains elevated, easing Treasury yields have provided a tailwind for equities, helping offset concerns about slowing global growth. The S&P 500 hovered near record territory, signaling that optimism around earnings has thus far outweighed macroeconomic uncertainty.
Gold Prices Dive
Gold prices took a more than 5% dive on Tuesday, the metal’s steepest single-day drop in over a decade, as easing U.S.-China tensions and a stronger dollar triggered profit-taking. Futures for December delivery fell to roughly $4,120 per ounce, ending a multi-month rally that had seen gold touch record highs above $4,300.
Analysts attributed the move to overbought conditions and improving risk sentiment following remarks from President Trump suggesting progress toward renewed trade talks with China. Silver and platinum futures also plunged, falling 7% and 5% respectively, as investors rotated out of safe-haven assets. Despite the setback, market strategists said the long-term backdrop for precious metals remains supportive, citing ongoing geopolitical uncertainty and central bank buying.
Corporate Breakups and AI Competition Take Center Stage
Beyond the earnings flood, corporate strategy shifts dominated Tuesday’s headlines. Warner Bros. Discovery’s decision to explore a potential breakup drew strong investor interest, signaling that media consolidation could accelerate into 2026. The company confirmed it’s evaluating both full and partial divestitures as part of a broader effort to boost shareholder value.
Meanwhile, in the tech sector, OpenAI’s upcoming product launch stirred volatility across the AI landscape. Alphabet’s nearly 2% decline weighed on the Nasdaq, as investors reacted to fears that OpenAI’s rumored browser could erode Google’s search dominance. The development comes just as Alphabet was regaining ground in the AI race thanks to Gemini’s enterprise adoption.
GSI Technology’s stock remained volatile after soaring earlier in the week on reports that its new chip architecture could rival Nvidia’s high-end GPUs. The company’s potential breakthrough in energy-efficient AI computing has drawn significant investor attention but also sparked caution about valuation risks.
Looking Ahead
Investors are now turning their attention to upcoming earnings from Netflix (NFLX), set to report after the bell, which will provide insight into the strength of its ad-supported tier and live content strategy. Meanwhile, Federal Reserve officials are slated to speak later this week, ahead of Friday’s key inflation data that could influence expectations for the next policy move.
With the Dow at record highs and the Nasdaq under pressure, markets appear to be recalibrating after a sharp rally in recent weeks. The next phase of the earnings season — led by Big Tech — will determine whether the market’s momentum can extend into year-end or if growth concerns will reassert themselves heading into November.
