Dow Climbs to Record High as Earnings Momentum Lifts Blue-Chip Stocks

The Dow Jones Industrial Average outpaced its peers on Tuesday, rising 0.5% and setting a fresh record high as a wave of upbeat corporate earnings fueled investor enthusiasm. The S&P 500 ended flat, while the Nasdaq Composite slipped 0.2%, weighed down by weakness in technology and mega-cap names that failed to sustain early momentum.

Blue-chip strength carried the Dow, led by sharp gains in Coca-Cola and 3M after both companies exceeded quarterly expectations. Coca-Cola rose 4.1%, while 3M surged nearly 7.7%, helping the industrials sector climb 0.9%. RTX was another standout, rallying 7.7% to an all-time high following a strong beat-and-raise report that lifted sentiment across the aerospace and defense group. GE Aerospace also advanced, while Lockheed Martin and Northrop Grumman lagged despite earnings beats of their own.

Consumer discretionary stocks delivered the day’s best performance, climbing 1.3% thanks to General Motors, which jumped nearly 15% after posting robust results and raising its full-year guidance. Ford gained 4.8% in sympathy, extending the sector’s rally. The health care group also added modestly to the upside, bolstered by a nearly 6% gain in Danaher after an earnings beat.

Technology stocks struggled to find traction, with the PHLX Semiconductor Index down 0.7% as chipmakers lost early steam. Texas Instruments managed to edge higher ahead of its earnings release, but broader pressure from names like NVIDIA and Oracle left the information technology sector fractionally lower. Oracle fell almost 7% after its AI World Conference, where commentary on ramped-up investment plans raised concerns about profit margins.

Defensive groups underperformed, with utilities down 1.0% and communication services sliding 0.9% amid a 2.2% drop in Alphabet ahead of an OpenAI-related product announcement. Amazon was a bright spot, rising 2.6% and standing as the only major tech name to record a gain wider than 0.2%. The S&P 500 Equal Weighted Index rose 0.5%, outpacing the market-weighted index.

Commodity markets were volatile as gold futures plunged 5.7% to $4,109.10 per ounce — their steepest single-day drop since 2020 — as investors took profits after a record rally. The selloff pressured the materials sector, which fell 0.7%, with Newmont down more than 9%.

Outside large caps, the small-cap Russell 2000 lost 0.5%, while the S&P Mid Cap 400 gained 0.4%, reflecting mixed risk sentiment. The market briefly wobbled after President Trump cast doubt on an expected meeting with Chinese President Xi, saying, “Maybe it won’t happen,” but losses were limited. With the U.S. government still in shutdown and no major economic data released, corporate earnings remain the market’s primary focus — and Tuesday’s results offered just enough fuel to keep the broader rally intact.

Our FTInvest 11 model portfolio posted a modest advance today, rising 0.12% to close at 842.96, extending its recovery following a stretch of volatile sessions earlier this month. The day began with subdued trading as investors weighed a cautious tone in global markets, but a steady afternoon climb allowed the index to finish at its highest level in nearly two weeks.

Early softness reflected lingering hesitation after the recent rotation between growth and defensive names, though sentiment improved as buying picked up in several of the index’s key holdings. The advance was broad but restrained; midday weakness briefly emerged as selling pressure hit select industrial and materials names, but the retreat was limited and short-lived. By the close, breadth had turned slightly positive, signaling renewed appetite for risk even as overall trading volume remained lighter than average.

While the day’s move was modest in magnitude, it marked a constructive finish to a steady session, reflecting improving investor confidence following the recent rebound. With FTInvest 11 closing just shy of its mid-October highs, attention now shifts to whether earnings season and upcoming macro data will provide the next catalyst for a sustained push higher.