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Chip Stocks Lead Market Rebound Before Tech Earnings

Wall Street Journal Markets •
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U.S. stocks experienced a broad recovery Tuesday, propelled by a significant rebound in chip shares and anticipation of major technology earnings. The PHLX Semiconductor Index surged 5.2%, spearheading the market's advance.

The Dow Jones Industrial Average climbed 377.29 points (0.73%) to 55216.55. The S&P 500 saw a gain of 65.92 points (0.89%), reaching 7509.20, while the Nasdaq Composite added 329.13 points (1.29%) to 25837.21. On the NYSE, preliminary data indicated 1,501 advancing issues against 1,232 declining ones.

This recovery in semiconductor stocks occurred as investors shifted their focus from a newly unveiled Chinese AI model to the upcoming earnings reports from major tech companies, expected on Wednesday. The market sentiment appears to be cautiously optimistic, with chip stocks playing a pivotal role in lifting the major indexes.