Earnings Strength Offsets Chip Selloff as Falling Oil Prices Boost Broader Market

Stocks finished mixed on Tuesday, but strong earnings results across multiple sectors and another sharp decline in oil prices helped the broader market overcome continued weakness in semiconductor stocks. The S&P 500 gained 0.2%, the Dow Jones Industrial Average climbed 1.0%, while the technology-heavy Nasdaq Composite slipped 0.2%.

Corporate earnings were the primary catalyst throughout the session, driving broad participation across the market. Seven of the eleven S&P 500 sectors closed higher, underscoring investors’ willingness to reward companies delivering solid quarterly results despite ongoing volatility in the technology sector.

Health care led the advance with a 2.4% gain after IQVIA surged 14.1% on stronger-than-expected earnings and an upbeat outlook. Consumer staples also outperformed, rising 2.0%, as Coca-Cola climbed 5.0% following another well-received quarterly report. Materials remained among the day’s strongest sectors, fueled by an 8.3% rally in Sherwin-Williams after the company reported earnings that exceeded expectations.

Communication services added 1.6%, supported by a continued rebound in Alphabet shares. The stock gained 1.9%, extending its recovery after last week’s post-earnings selloff and helping lift the broader sector.

Beneath the surface, market participation remained healthier than the headline index performance suggested. The equal-weighted S&P 500 advanced 1.1%, significantly outperforming the market-cap-weighted index, reflecting strength across a broad range of industries despite another difficult day for semiconductor stocks.

Technology remained the market’s primary weak spot. The information technology sector fell 1.2% as the Philadelphia Semiconductor Index dropped another 4.5%, extending its decline for the month to nearly 23%. Investors continued reducing exposure to memory-chip companies ahead of SK hynix’s earnings report, which is expected to provide fresh insight into AI-driven high-bandwidth memory demand, pricing trends, and the outlook for the semiconductor industry.

Outside of semiconductor stocks, however, large-cap technology held up relatively well. The Vanguard Mega Cap Growth ETF slipped just 0.1% as gains in several industry leaders helped cushion the broader sector. Apple rose 0.9% to another record closing high, while Microsoft advanced 1.1% ahead of its quarterly earnings release later this week.

Energy was the weakest-performing sector, falling 1.4% as crude oil prices continued their sharp retreat. Reuters reported that Oman presented Iran with a proposal for voluntary transit fees through the Strait of Hormuz that has gained support from Gulf nations. A separate Reuters report indicated that China has held direct discussions with Yemen’s Houthi movement regarding the safe passage of commercial vessels through the Red Sea. Those developments eased concerns about supply disruptions and pushed WTI crude oil futures down $3.33, or 4.0%, to settle at $79.32 per barrel.

Investor attention now shifts to Wednesday’s Federal Reserve policy announcement, with the CME FedWatch Tool currently assigning a 31.5% probability of an interest rate hike. Markets will also closely watch SK hynix’s earnings before the opening bell, as the company has become a focal point for sentiment across the semiconductor industry. Later in the week, another wave of earnings from large-cap technology companies is expected to provide further insight into AI investment trends, enterprise spending, and the broader corporate earnings outlook.

Our FTinvest 11 model portfolio gained 0.57% to close at 1,071.89, rebounding after three consecutive daily declines. The recovery lifts the portfolio further away from the recent consolidation lows while keeping it comfortably above the 1,000 level. FTInvest 11 now trades approximately 2.2% below its all-time closing high of 1,096.33, remaining within striking distance of record territory.

FTinvest 11 is now up approximately +15.50% year-to-date, maintaining a strong double-digit return for 2026. Today’s advance suggests renewed buying interest following a brief period of consolidation, while the portfolio continues to retain the vast majority of the gains achieved during July’s powerful rally. FTInvest 11 remains well positioned, with its disciplined, value-driven investment strategy continuing to emphasize long-term capital appreciation through changing market conditions.