Broadcom and GM boost Wall Street as AI stocks offset losses

Broadcom Inc. led a mixed session on Wall Street on Tuesday after announcing a major financing deal. The company's stock climbed 3 percent following the announcement. Under the new agreement, several Wall Street firms will help Anthropic access Broadcom's XPU AI accelerators and networking solutions. The total value of the financing package is $63 billion.

The performance of AI-related stocks supported the broader market despite widespread selling elsewhere. The S&P 500 index rose 0.2 percent, moving within 1.6 percent of its all-time high set earlier this month. The Nasdaq composite index increased 0.6 percent. The Dow Jones Industrial Average fell 88 points, or 0.2 percent, as of 10:30 a.m. Eastern time. Most stocks within the S&P 500 were trading lower, but gains in influential tech names kept the overall index positive.

Investors have watched AI stocks closely for weeks. Concerns persist about the high cost for companies to borrow money for data centers and new chips. Advanced Micro Devices rose 3.8 percent, acting as a key support for the S&P 500. CoreWeave, which rents out AI chips via the cloud, jumped 5.2 percent. That stock has experienced sharp swings in recent days.

General Motors stock climbed 4.8 percent on news that it will move its listing from the New York Stock Exchange to the Nasdaq. The automaker stated that the Nasdaq, home to major technology firms, aligns with its current tech-driven strategy. The move could also allow GM to be included in the Nasdaq 100 index. That inclusion would require investment funds that mimic the index to buy GM shares. General Motors has traded on the NYSE since 1911.

JetBlue Airways saw its stock fly 20 percent higher. The airline reported a larger loss for the summer than analysts had predicted. However, CEO Joanna Geraghty said the company expects higher operating profit per dollar of revenue in the final three months of the year. Investors had feared a worse outcome after the stock had lost nearly 48 percent of its value earlier this year.

Royal Caribbean Group also contributed to the market's stability, rising 6.6 percent. The cruise line delivered stronger summer profits than expected and raised its forecast for full-year profit. Conversely, Boeing fell 5.1 percent after reporting a larger quarterly loss than analysts anticipated. Hilton Worldwide Holdings dropped 4.3 percent following weaker summer revenue and a profit forecast that fell below expectations. The hotel company said it expects increased impact from the Middle East during the coming quarter.

Sherwin-Williams stock declined 3.1 percent after the paint and coatings maker reported weaker profits. High mortgage rates have slowed the housing industry, reducing demand for the company's products. CEO Heidi Petz said customer sentiment and leading indicators point to muted demand for the rest of the year and into 2027. The company is also dealing with inflation that is pushing up raw material costs.

A report released Tuesday showed that U.S. consumer confidence improved in October. Economists had expected the measure to weaken further. In the bond market, Treasury yields remained relatively steady ahead of the Federal Reserve's interest rate decision. The yield on the 10-year Treasury edged down to 4.99 percent from 5.00 percent late Monday. Oil prices also moved modestly, with Brent crude dipping 0.3 percent to $110.37 per barrel. International markets were mixed, with stocks in Seoul jumping 3.1 percent and stocks in Shanghai falling 1.3 percent.