U.S. stocks edged slightly higher on Tuesday as Wall Street built momentum from the Dow’s record-setting rally, with investors assessing geopolitical developments in Venezuela while preparing for a packed week of economic data.
The Dow Jones Industrial Average climbed again after notching an all-time high in the prior session, while the S&P 500 and Nasdaq Composite traded just above the flat line. Gains were more modest than Monday’s surge, reflecting a market shifting from headline-driven moves toward upcoming macro signals and sector-level positioning.
Market Movers:
- Alumis (ALMS) +132%: Shares exploded higher after the biotech reported its oral psoriasis treatment met all primary and secondary endpoints in two Phase 3 trials, with a significant share of patients achieving near-complete or complete skin clearance. The results position Alumis for an FDA submission in the second half of 2026, dramatically improving its long-term outlook.
- Aeva Technologies (AEVA) +34%: The stock surged after Aeva said its 4D LiDAR technology was selected for Nvidia’s DRIVE Hyperion autonomous vehicle platform. The partnership marks a major commercial validation for Aeva and ties its growth trajectory directly to Nvidia’s expanding automotive AI ecosystem.
- Sandisk (SNDK) +20%: Shares jumped following the unveiling of its Optimus SSD lineup at CES, streamlining its product portfolio for AI, gaming, and data center demand. The move builds on strong momentum following the Western Digital spin-off and highlights improving NAND pricing trends.
- Microchip Technology (MCHP) +7%: The semiconductor firm rallied after raising its revenue outlook well above prior guidance, citing broad-based recovery across end markets. Management highlighted the improvement in inventory dynamics and stronger bookings heading into the March quarter.
- Zeta Global (ZETA) +5%: The stock advanced after the company announced a strategic collaboration with OpenAI to power enterprise marketing tools under its Athena platform. Investors responded positively to signs of accelerating enterprise adoption and deeper integration of AI.
- Marvell Technology (MRVL) +3%: Shares moved higher after Marvell announced a $540 million acquisition of XConn Technologies to strengthen its AI data center connectivity portfolio. The deal is expected to become accretive and scale meaningfully by fiscal 2028.
- STAAR Surgical (STAA) -13%: Shares tumbled after the company terminated its proposed sale to Alcon due to insufficient shareholder approval. The decision leaves STAAR operating independently amid renewed uncertainty around its strategic path.
- Datavault AI (DVLT) -6%: The stock fell following disclosures tied to equity issuance connected to intellectual property acquisitions. Investor concerns centered on dilution, despite operational expansion plans outlined in the filing.
Markets Reassess Venezuela Fallout
Energy stocks cooled after Monday’s steep rally as investors reassessed the economic implications of the U.S. capture of Venezuela’s president. While oilfield services and majors initially surged on expectations of infrastructure rebuilding, Tuesday’s pullback suggested the market is shifting toward a longer-term view of supply normalization rather than immediate upside. Comments from the White House about potential subsidies for U.S. energy companies investing in Venezuela continue to circulate, but traders appear to be waiting for concrete policy details before repricing the sector further.
AI Takes Center Stage at CES
Technology stocks found support as investors digested major announcements from CES in Las Vegas. Nvidia’s unveiling of its next-generation Vera Rubin AI platform and AMD’s competing Helios system refocused attention on infrastructure, power efficiency, and data center evolution. The developments reinforced expectations that AI spending will remain a dominant investment theme in 2026, though leadership within the trade may continue rotating as hardware architectures and use cases evolve.
Economic Data Back in Focus
With data flow normalizing after months of disruption, markets are increasingly focused on labor and services-sector indicators. Tuesday’s services PMI showed growth slowing to an eight-month low, reinforcing the Federal Reserve’s cautious stance as policymakers wait for clearer signals from the jobs market. Friday’s employment report is shaping up to be the most consequential data release of the week, with rate expectations for early 2026 still finely balanced.
Looking Ahead
As markets settle into the new year, investor focus is shifting from geopolitical shocks toward fundamentals, earnings expectations, and the Federal Reserve’s policy path. With economic data accelerating and corporate guidance set to pick up, near-term trading is likely to remain measured — but positioning for growth themes like AI, energy infrastructure, and selective biotech innovation continues to shape market leadership.