Wall St booms as slight dip in oil prices fuels hope

• Wall Street climbed overnight, driven by a large rally after oil prices retreated for the first time in weeks.
• Healthcare stocks were the biggest winner, hitting a record high, followed by financial services.
• Experts say the market is seeing “a nice rebound” after concerns on energy, oil and artificial intelligence.

Wall Street’s main indices have climbed as healthcare stocks hit a record high and ‌easing oil prices boosted investor sentiment while markets continued to stabilise following last week’s technology-led sell off.

Brent crude was trading 1.3 per cent lower, reversing course after touching ‌a near five-month high earlier in the day.

Most S&P 500 constituents gained, with healthcare and financials rising 1.8 per cent and 1.0 per cent respectively.

Energy led the losses while an about 2.0 per cent decline in Meta Platforms pulled the communication services sector down.

The market extended Monday’s rebound, when the S&P 500 and Nasdaq climbed as investors bought the dip in technology stocks after last week’s sharp sell off, fuelled in part by concerns over CoreWeave’s debt ‌load and the cost ‌of financing the ⁠AI buildout.

Artificial intelligence-related shares were flat to higher on Tuesday, after showing weakness in pre-market trading.

CoreWeave was last up 1.6 per cent while chip gauge Philadelphia Semiconductor index rose 0.4 per cent.

“You’re seeing some strength in some high-value stocks and the Dow, and so that’s helping to sort of lift the overall index,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.

“Concerns about what’s going on as far as semiconductors, that’s still there and AI-related names are down but for the most part, the rest of the market is seeing a ⁠bit of a nice rebound.”

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Elsewhere, shares of South Korean AI infrastructure company Elice Group ‌tumbled nearly ​30 per cent in their market debut, slipping below their IPO price after the company raised 201.1 billion won ($A215.96 million) in its offering.

In early trading, the ‌Dow Jones Industrial Average rose 617.62 points, or 1.22 per cent, to 52,599.29, the S&P 500 gained 53.99 points, or 0.70 per cent, to 7,744.72 while ​the Nasdaq Composite added 154.58 points, or 0.59 per cent, to 26,585.47.

Investors are watching this week’s corporate earnings for clues on whether companies can maintain strong growth in the face of mounting macroeconomic risks.

Quarterly results from SpaceX and Netflix are due after the ​market ​close on Tuesday while heavyweights Meta Platforms and Tesla ​are scheduled to report on Wednesday.

Steel Dynamics fell 1.0 per cent after the steelmaker ‌missed third-quarter profit estimates.

General Motors shares dropped 5.3 per cent after the car maker forecast its annual earnings below analysts’ expectations.

The 3M company gained 5.3 per cent after it said it was expanding its data-centre partnership with Amazon, and issued a warrant to an Amazon subsidiary to purchase 3M common stock worth more than $US521 million.

The industrial conglomerate also raised its full-year profit forecast on Tuesday.

Credit reporting firm Equifax jumped 9.6 per cent after it reported third-quarter profit above analysts’ ​estimates.

Advancing issues outnumbered decliners by a 3.55-to-1 ratio on the NYSE and by 3.45-to-1 on the Nasdaq.

The S&P 500 posted 21 ​new 52-week highs and one ⁠new low while the Nasdaq Composite recorded 26 new highs and 183 new lows.

-AAP