Dow gains 270 points as chip stocks rally, oil prices retreat

• Nvidia rebounded nearly 3% Tuesday after a 10% Monday gain, recovering from a 20% decline through last week including a 13% Friday drop; Micron and Broadcom also rose 2.8% and 0.8% respectively
• Oil prices fell over 2% below $90/barrel as President Trump indicated a US-Iran deal could be reached in 'two or three days' to reopen the Strait of Hormuz, though Netanyahu warned the conflict is 'not yet over'
• Traders are pricing in a 43% probability of a December Fed rate hike following Friday's strong jobs report; SpaceX's $75 billion IPO at a $1.75 trillion valuation would be the largest on record

Market Summary: Dow Gains 270 Points on Chip Rally and Oil Retreat

Key Market Movements:

US equity markets posted solid gains Tuesday, with the Dow Jones advancing 272 points, the S&P 500 rising 0.7%, and the Nasdaq Composite gaining 0.88%. Semiconductor stocks led the rally for a second consecutive session following last week's sharp selloff.

Sector Highlights:

Chip stocks rebounded strongly, with Nvidia surging after falling roughly 20% in the two sessions ending last week, including a 13% Friday decline. Broadcom and Micron advanced 0.8% and 2.8%, respectively. The semiconductor sector experienced heavy profit-taking last week due to valuation and interest rate concerns.

Energy Markets:

Oil prices fell over 2%, with West Texas Intermediate crude dropping below $90 per barrel. The decline followed President Trump's statement that a US-Iran deal could be reached within "two or three days" to reopen the Strait of Hormuz. Both Iran and Israel indicated attacks had ceased, though Israeli PM Netanyahu cautioned the conflict was "not yet over."

Upcoming Catalysts:

Investors await May's Consumer Price Index data Wednesday for insight into inflation pressures from higher energy costs. Friday's strong jobs report raised concerns about potential Federal Reserve rate hikes, with traders pricing in a 43% probability of a 25-basis-point increase in December.

Corporate Developments:

SpaceX's anticipated Friday IPO seeks to raise $75 billion at a $1.75 trillion valuation, representing the largest IPO on record. OpenAI also announced it confidentially filed for a US IPO. Nuvalent surged 38% after GSK's $10.6 billion acquisition agreement.

Market Implications:

Lower oil prices may ease inflation concerns, while robust AI-sector IPO activity tests investor appetite for technology investments amid valuation uncertainties.