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Stocks opened lower and drifted higher through the middle of the trading session on Tuesday, but all three main equity indexes faded into the closing bell as global bond yields continued to rise. Investors, traders and speculators will turn their attention to Wednesday’s post-closing-bell Nvidia earnings event to gauge the health of the market’s major trend.
Both the 30-year and 10-year Treasury yield hit 52-week highs, reaching 5.197% and 4.687%, respectively, while the 2-year Treasury yield ticked up to 4.112% from 4.09% on Monday.
Meanwhile, the front-month West Texas Intermediate crude oil futures contract dipped 0.1% to $104.29.
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By the closing bell, the tech-heavy Nasdaq Composite was down 0.8% at 25,870, the broad-based S&P 500 was off 0.7% at 7,353, and the blue-chip Dow Jones Industrial Average was down 0.7% at 49,363.
Nvidia is down a day ahead of earnings
Nvidia (NVDA, -0.8%), which will report fiscal 2027 first-quarter results after the closing bell on Wednesday, “will help set the tone for a stock market that is in need of its next catalyst after an incredible run since the March lows,” Granite Bay Wealth Management Chief Investment Officer Paul Stanley writes.
You can keep up with developments and analysis on the latest Nvidia news in our live earnings blog.
As Stanley sees it, that “next catalyst” is critical now, with the market “a bit tired” after a recent strong run but also facing “renewed worries” about inflation and interest rates.
“Investors need some reassurance that the AI story is still alive and well,” he explains, “and that the company is producing enough revenue growth to back up its elevated valuation.”
Stanley expects Nvidia to justify expectations, “which is just what the stock market is looking for.” Indeed, as the CIO concludes, “Nvidia’s presence is unavoidable in this market.”
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Agilysis (AGYS, +12.5%) was one of those tech stocks that got hammered earlier this year as markets priced in the threat artificial intelligence (AI) represented to companies that write code for a living.
AGYS was down 40.9% year-to-date through Monday’s close. Then management reported expectations-beating fiscal 2026 Q4 earnings, on top of its 17th straight quarter of record revenue. Management guided to fiscal 2027 revenue of $365 million to $370 million vs a Wall Street forecast for $363.59 million.
“The business has begun a noticeable uptrend in CY26 that should continue throughout FY27,” Oppenheimer analyst Brian Schwartz writes. “The strengthening business momentum is visible with top-line and EBITDA growth accelerating in F4Q26.” The analyst reiterated his Outperform (Buy) rating and raised his 12-month target price from $90 to $100, citing “a strong beat-and-guide-above in F4Q26.”
Schwarz notes that AGYS already carries premium multiples relative to other small-cap stocks and mid-cap stocks in the software industry. “But,” he concludes, “if the company keeps beating-and-guiding above, similar to F4Q26, then the stock should keep working.”
Home Depot rises on beat-and-reiterate report
Home Depot (HD, +0.9%) was among nine of 30 Dow Jones stocks to post gains on Tuesday after it reported fiscal 2026 first-quarter revenue and earnings that exceeded Wall Street estimates. Management also reaffirmed full-year guidance. HD traded up as much as 1.1% intraday before fading into the closing bell.
Rising fear of inflation is having little impact on the big box home improvement retailer’s top line right now. “Our first quarter results were in line with our expectations,” CEO Ted Decker said. “The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.”
At the same time, HD hasn’t exactly lit up the total return scoreboard lately, with the consumer discretionary stock down more than 12% so far in 2026 and more than 19% over the trailing 12 months.
“To us this indicates that HD continues to bounce along the bottom despite macro headwinds related to housing specifically and the consumer more broadly,” D.A. Davidson analyst Michael Baker observes. “These include higher rates, higher gas prices and a return to inflationary trends in general.”