Stocks Edge Higher as Tech Leads Ahead of Big Tech Earnings and Trump–Xi Summit

U.S. stocks advanced Tuesday, with tech shares pacing gains while small caps lagged. The Dow Jones Industrial Average rose 161.78 points to 47,706.4 (+0.34%), the S&P 500 added 15.75 to 6,890.91 (+0.23%), and the Nasdaq Composite climbed 190.04 to 23,827.5 (+0.80%). The Russell 2000 slipped 0.55% to 248.93, underscoring a defensive tilt beneath the megacap bid. Crude oil fell 2.32% to $59.89, while gold retreated 1.19% to $3,972.00, moves that eased inflation concerns but hinted at caution into a catalyst-heavy stretch.

The next inflection comes on Wednesday, when Alphabet reports results that will test whether its heavy AI spending is yielding durable returns. Wall Street sentiment is broadly constructive after a recent Department of Justice remedies decision—seen by several banks as “better than feared”—that some at KeyBanc describe as a “clearing event,” allowing investors to refocus on core businesses like high-margin Search and a steadily improving Cloud unit. CEO Sundar Pichai has argued that AI is “expanding the search opportunity,” but the proof investors want to see comes in Wednesday’s engagement and monetization metrics. Other tech giants, Meta and Microsoft, report earnings after the bell tomorrow.

Beyond earnings, geopolitics could sway risk appetite. Donald Trump and Xi Jinping will meet in South Korea on Thursday, placing trade headlines squarely within the next news cycle. Markets are watching for clarity on possible tariff rollbacks, controls on fentanyl-precursor exports, soybean purchases, and rare-earth policy areas with direct read-throughs for agriculture, chemicals, and tech supply chains. As the Peterson Institute’s Mary Lovely cautions, “This is a cease-fire, not disarmament,” a reminder that even constructive language may not resolve structural tensions.

For now, the market’s tone reflects anticipation rather than conviction: mega-cap tech leadership lifted the Nasdaq, while cyclicals were mixed and small caps fell. With oil sliding and gold softer, the macro backdrop offers a tailwind to multiples—if earnings and policy headlines cooperate. The test arrives Wednesday after the close for Alphabet, followed by a cascade of reports from other large-cap tech names and the Trump–Xi readout soon after.