The Nasdaq advanced ahead of Nvidia's earnings, while oil prices fell sharply after U.S. Navy mine clearance in the Strait of Hormuz. Gold is set for its strongest monthly rally in decades, and Bitcoin briefly touched $80,000
U.S. stock indexes posted modest gains midday Tuesday, with the Nasdaq Composite leading the way as investors positioned for Nvidia's highly anticipated earnings report. Meanwhile, oil prices dropped sharply after the U.S. Navy cleared mines from the Strait of Hormuz, easing some supply concerns. Gold and Bitcoin continued to attract attention, with gold on pace for its biggest monthly gain in over two decades and Bitcoin briefly reaching $80,000 before pulling back.
As of early afternoon, the Nasdaq Composite was up 0.56%, outpacing the S&P 500's 0.27% rise and the Dow Jones Industrial Average's 0.22% gain. The session was relatively quiet, with most major sectors posting only minor moves. The focus remained on the technology sector, where chip stocks rebounded after a volatile start to the week.
Chip Stocks Rebound Before Nvidia Results
Semiconductor shares recovered from Monday's losses, with Nvidia rising 1.6% ahead of its quarterly earnings release scheduled for Wednesday after the market close. The company's results are widely seen as a bellwether for the ongoing strength of the artificial intelligence (AI) investment theme. Analysts are expected to scrutinize Nvidia's gross margins, particularly in light of rising memory costs. Margins below 75% could indicate the company is absorbing higher input costs to defend its dominant position in AI accelerators, while stronger margins would suggest it is passing those costs on to customers.
Other chipmakers also saw gains. Advanced Micro Devices climbed nearly 5% following a bullish analyst note, while memory-focused firms like Micron Technology and SK Hynix recouped some of their recent declines. The sector's performance underscores the market's sensitivity to both company-specific news and broader trends in AI and memory pricing.
Oil Prices Slide on Strait of Hormuz Developments
Oil futures fell 3.4% after President Trump announced that the U.S. Navy had cleared mines from the Strait of Hormuz, a critical chokepoint for global energy shipments. While tanker traffic remains limited, traders interpreted the news as a sign that immediate supply risks could be easing. The United States Oil Fund, a popular oil ETF, mirrored the decline. On the Dow, Goldman Sachs provided the largest positive contribution, rising 1.6%, but declines were widespread among the index's components, with 17 of 30 stocks trading lower.
The Strait of Hormuz handles roughly one-fifth of global oil shipments, so any disruption or resolution in the region can have an outsized impact on energy markets. The recent volatility highlights how geopolitical developments and official statements can quickly shift market sentiment, even when underlying supply and demand fundamentals remain uncertain.
Gold and Bitcoin Attract Safe-Haven Flows
Outside of equities and energy, hard assets like gold and Bitcoin have drawn renewed interest from investors seeking protection against government debt concerns and a weaker dollar. Gold is on track for its largest monthly gain since 1999, reflecting heightened demand for traditional safe-haven assets. Bitcoin, meanwhile, briefly touched $80,000 in morning trading, a sharp rebound from levels below $60,000 seen in June.
Recent moves in gold and Bitcoin have been fueled in part by last week's Treasury announcement of expanded bond buybacks, a rare step that followed the U.S. national debt surpassing $40 trillion and the 30-year Treasury yield approaching a two-decade high. These developments have raised questions about the sustainability of government borrowing and the potential for further dollar weakness, prompting some investors to diversify into alternative stores of value.
According to data from the U.S. Treasury Department, the national debt reached $40 trillion in July 2026, while the 30-year Treasury yield briefly touched 5.34%-its highest level since 2006. Gold futures have gained more than 12% month-to-date, and Bitcoin's year-to-date return remains volatile but well above most traditional asset classes.
For investors, the appeal of hard assets like gold and Bitcoin often hinges on their perceived ability to hedge against inflation, currency depreciation, or financial system stress. While both assets can offer diversification benefits, they also come with distinct risks. Gold's value is influenced by real interest rates and central bank policy, while Bitcoin's price is subject to regulatory uncertainty, technological shifts, and speculative trading. As with any investment, suitability depends on individual goals, risk tolerance, and time horizon.
