US stocks close mixed as upbeat earnings offset AI concerns

US stocks closed mixed Tuesday as upbeat corporate earnings and lower oil prices supported sentiment, while concerns about artificial intelligence spending weighed on technology shares.

The Dow Jones industrial average rose 529.85 points, or 1.02%, to 52,495.88, while the S&P 500 gained 21.84 points, or 0.28%, to 7,712.57.

The Nasdaq composite slipped 6.07 points, or 0.02%, to 26,424.82.

Strong earnings from industrial and defense companies helped support the market. Shares of 3M jumped more than 5.7% after the industrial products maker reported better-than-expected results and raised its full-year outlook.

Shares of Northrop Grumman advanced more than 4.5% after the aerospace and defense company also posted earnings above expectations.

Oil prices retreated as investors monitored developments in the Middle East, easing some pressure on financial markets.

US benchmark West Texas Intermediate crude futures settled 1.8% lower at $101.79, while international benchmark Brent declined 0.7% to $108.79 a barrel.

The yield on 10-year US Treasury bonds fell about 2 basis points to 5.115%.

Meanwhile, concerns persisted over heavy borrowing to finance AI infrastructure and whether future demand would justify the spending.

Some AI-related stocks nevertheless gained ground during the session. Western Digital rose more than 3.4%, while Seagate Technology added more than 2%. CoreWeave and Marvell Technology each advanced more than 1%.

Investors are looking to upcoming earnings reports from major technology companies for details on returns from AI investments, data center spending and capital expenditure plans for 2027.

- European stocks fall as protests weigh on sentiment

European stocks closed lower as escalating protests in France and their spread to other European countries weighed on investor sentiment.

The benchmark Stoxx Europe 600 index fell 0.92% to 638.64.

France's CAC 40 declined 0.38% to 7,838.49, while Germany's DAX slipped 0.06% to 25,304.42.

Britain's FTSE 100 lost 0.29% to 10,733, and Italy's FTSE MIB edged down 0.03% to 49,071.37.