Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Monday, Jan. 5, 2026.
Michael Nagle | Bloomberg | Getty Images
The Nasdaq Composite rose on Tuesday, led by artificial intelligence darling Nvidia, while the Dow Jones Industrial Average took a breather after a rally in the previous session that sent it to record levels.
The tech-heavy Nasdaq gained 0.4%, while the blue-chip Dow traded 64 points, or 0.1%, higher. The S&P 500 rose 0.3%.
Nvidia added 2% to lift the S&P 500 and Nasdaq. Other stocks related to AI also lifted the broader market, including Micron Technology and Palantir Technologies. Those two names advanced 6% and almost 2%, respectively.
The 30-stock benchmark closed at a record on Monday after the U.S. captured and ousted Venezuelan leader Nicolas Maduro over the weekend, while President Donald Trump Trump encouraged big investments from U.S. oil companies.
Energy stocks rose broadly on Monday, with the S&P 500 energy sector posting its best one-day gain since July. Chevron, SLB and Halliburton ticked higher again on Tuesday.
“Historically, headline-capturing geopolitical events can produce short-term volatility and falling equity prices,” said Tom O’Shea, director of research and investment strategy at Innovator ETFs. “However, in this instance, the S&P 500 rose on the first trading day following the operation, with energy stocks leading the gains on anticipation that U.S. companies may benefit from potential infrastructure rebuilding in Venezuela. Defense stocks, precious metals, and Bitcoin also rallied, suggesting a mixed investor response.”
Investors are also looking ahead to key U.S. economic releases due this week. The December ADP private payrolls report is scheduled for Wednesday morning, and the government’s monthly jobs report is slated for Friday.