Daily market recap: small caps outperform as earnings and housing data steer trading
U.S. equities ended mostly higher on Tuesday as investors favored smaller companies and cyclical shares over large technology names. The Dow and S&P 500 advanced, the Nasdaq was roughly flat, and the Russell 2000 outperformed while volatility measures fell. Strong quarterly results from several industrial and consumer companies helped sentiment, while weak pending home sales weighed on housing-related stocks and bond yields eased.
The Dow rose 1.02% to 52,495.88 and the S&P 500 added 0.28% to 7,712.57, while the Nasdaq slipped 0.02% to 26,424.82. The Russell 2000 climbed 1.65% to 2,773.42, and the VIX fell 6.13% to 17.31, reflecting a session in which smaller and cyclical shares drew demand over mega-cap technology.
Quarterly results from 3M, Equifax and Hasbro supported sentiment, and oil-and-gas drilling and computer storage led industry groups. Pending home sales fell 7.3%, pushing the 10-year Treasury yield to 5.115% and weighing on residential builders and real estate agents; Apple and Meta declined as investors rotated ahead of AI earnings.
The split session could affect households unevenly: investors with broad or small-cap exposure may see different results from those concentrated in large tech, while weaker pending home sales may add uncertainty for buyers, sellers, and construction-related workers. Lower Treasury yields could ease some borrowing costs, though the effect may be limited and uneven. Upcoming AI and megacap earnings may also shape sentiment for retirement accounts and job prospects in tech-adjacent sectors.