The Dow Jones Industrial Average surged to another record close on Tuesday, buoyed by a series of strong corporate earnings reports that reinforced investor optimism about the resilience of major U.S. companies. Gains from household names such as Coca-Cola, 3M, and General Motors helped the blue-chip index climb even as technology shares lagged, reflecting a rotation from growth stocks into more traditional sectors.
The 30-stock Dow rose 218.16 points, or 0.47%, to finish at 46,924.74, briefly crossing the 47,000 mark for the first time in history. The S&P 500 closed nearly unchanged, adding just 0.03% to end at 6,735.35, while the tech-heavy Nasdaq Composite slipped 0.16% to 22,953.67, pressured by weakness in major technology names.
Coca-Cola and 3M were among the biggest contributors to the Dow’s gains. Both companies reported quarterly earnings that exceeded Wall Street’s expectations, pushing their shares up 4.1% and 7.7%, respectively. Analysts credited the companies’ solid performance to effective cost management and strong international sales, particularly in emerging markets.
General Motors delivered an even more dramatic rally, soaring 14.9% after raising its full-year profit outlook and surpassing analyst estimates. The automaker also said it expects to offset about 35% of the impact from President Donald Trump’s newly imposed tariffs, reassuring investors who had feared the trade policies would drag on margins.
The broader market also found support from better-than-expected earnings in the financial sector. Regional lender Zions Bancorp rose more than 1% after reporting a year-over-year increase in third-quarter profit. The strong results came despite concerns over credit quality that had triggered a selloff in bank stocks the week prior.
“This is a good sign that big multinational stocks are posting better than expected results,” said Louis Navellier, founder and chief investment officer at Navellier & Associates. “This essentially means the Q3 announcement season is off to a strong start and that we are going to have a great year-end rally.”
While industrial and consumer staples stocks lifted the Dow, technology shares weighed on the broader market. The sector came under pressure after President Trump cast doubt on his anticipated meeting with Chinese President Xi Jinping, which had been expected to ease tensions over tariffs and technology trade restrictions. “Maybe it won’t happen,” Trump said, adding to investor unease.
Alphabet and Broadcom both fell around 2%, while Nvidia dropped nearly 1%. The pullback followed months of strong gains fueled by enthusiasm for artificial intelligence and semiconductor demand. Many investors have been hoping that improved U.S.–China relations could reduce supply chain disruptions and support chipmakers in the months ahead.
Looking ahead, traders are closely watching a critical stretch of the third-quarter earnings season. Netflix is set to report after Tuesday’s closing bell, followed by Tesla on Wednesday. With the federal government still partially shut down, the flow of economic data remains limited, placing greater emphasis on corporate earnings to gauge the health of the economy.
So far, more than three-quarters of S&P 500 companies reporting results have beaten analysts’ estimates, according to data compiled by FactSet. Notably, the so-called “Magnificent Seven” tech giants—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—are expected to deliver combined year-over-year earnings growth of nearly 15%, more than double the rest of the index’s 6.7% growth rate.
Investor sentiment is also being supported by growing expectations that the Federal Reserve will cut interest rates by a quarter point at its late October meeting. Friday’s upcoming Consumer Price Index report could provide further clarity on inflation trends, which will likely influence the Fed’s next move.
Despite mixed signals from the technology sector, analysts say the market’s underlying strength remains intact. “Strong corporate profits are keeping optimism alive even in the face of policy uncertainty,” said Navellier. “If earnings momentum continues and inflation data cooperate, we could see this rally extend into the holiday season.”
With earnings continuing to outperform expectations and rate-cut hopes on the rise, Wall Street’s bullish tone appears set to carry into the final months of the year—though tech volatility and geopolitical risks may keep investors cautious in the near term.
