U.S. equity markets surged Tuesday, with the tech-heavy Nasdaq Composite leading gains as XLK surged +4.98%, reflecting renewed AI-sector optimism following SpaceX earnings, SoftBank's 10% jump, and Palantir's +29% blockbuster rally. The S&P 500 (SPY +1.8%) and Dow (DIA +1.73%) also posted solid advances, while the Russell 2000 (IWM +1.85%) extended its recent strength. Bitcoin (BTC +0.6%) held steady. Energy (XLE -0.46%) and healthcare (XLV -0.09%) lagged the broader rally. Markets are pricing in a Fed hold as Philadelphia Fed President Paulson signaled contentment with current rates while keeping options open. Treasury Secretary Bessent's support for Japan's yen intervention helped stabilize Asian markets overnight.
| Index | Ticker | Price | Change | % Change |
|---|---|---|---|---|
| S&P 500 ETF | SPY | $771.33 | 13.66 | 1.8 |
| Nasdaq 100 ETF | QQQ | $723.85 | 23.78 | 3.4 |
| Dow Jones ETF | DIA | $540.43 | 9.21 | 1.73 |
| Russell 2000 ETF | IWM | $301.71 | 5.49 | 1.85 |
| Sector ETF | Ticker | Price | Change | % Change |
|---|---|---|---|---|
| Technology Select Sector | XLK | $186.9 | 8.86 | 4.98 |
| Financial Select Sector | XLF | $57.88 | 0.5 | 0.87 |
| Energy Select Sector | XLE | $58.52 | -0.27 | -0.46 |
| Health Care Select Sector | XLV | $162.1 | -0.14 | -0.09 |
| Consumer Discretionary | XLY | $118.29 | 0.08 | 0.07 |
| Consumer Staples | XLP | $85.37 | 0.51 | 0.6 |
| Bitcoin | BTC-USD | $28.4 | 0.17 | 0.6 |
Philadelphia Fed President Paulson content with rates at current level, but keeping an open mind
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Bessent says U.S. backed Japan’s yen intervention to help stabilize Asia
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Michael Burry bets against rally: 'We are near a major top, and possible a 1987-type fall'
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SpaceX earnings takeaways: Soaring AI costs outweigh revenue beat in first report since IPO
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SoftBank jumps 10% as Asia tech stocks track Wall Street AI rally
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AMD's revenue climbs 50% and data center sales doubled, but the stock is down
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The stock market soars. 5 reasons behind the big surge Tuesday
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CNBC Daily Open: Mixed messaging on Iran-U.S. possible deal — but markets are cheering
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Palantir stock skyrockets 29%, narrowly missing its best day ever after 'otherworldly' results
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CNBC Daily Open: A U.S. yen intervention dressed in euros
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AI Sector Momentum Dominates — Palantir surged +29%, AMD revenue climbed 50% with data center sales doubling, and SpaceX reported soaring AI costs outweighing revenue beats. The XLK tech sector ETF posted its best day in months at +4.98%.
Michael Burry's Warning — The "Big Short" investor placed a major bet against the rally, warning of a potential 1987-type crash and calling the current level "near a major top."
SoftBank Leads Asia Higher — SoftBank jumped 10% as Asian tech stocks tracked the Wall Street AI rally, with Samsung and SK Hynix also advancing.
Yen Intervention Support — Treasury Secretary Bessent confirmed the U.S. backed Japan's yen intervention to stabilize Asian currencies, easing FX volatility concerns.
Fed Remains Data-Dependent — Philadelphia Fed President Paulson expressed comfort with current rate levels while maintaining flexibility on future policy adjustments.
Investors will watch jobless claims data and any Fed speakers later this week for cues on the rate path. With AI earnings season in full swing and the Burry short shadow hanging over markets, expect elevated volatility — particularly in tech names that have run hard on the back of the latest AI narrative. The next major catalyst: August CPI data expected mid-month.
Source: Yahoo Finance (market data), CNBC (news) | Report generated 2026-08-05