The Nasdaq jumped 215.74 points (0.9%) to a nearly three-month closing high of 23,817.10, and the S&P 500 climbed 28.37 points (0.4%) to a record closing high of 6,978.60.
The Dow ended the session off its lows but still dropped 408.99 points (0.8%), to 49,003.41. Broader market strength came as investors looked ahead to earnings from major tech firms like Microsoft, Apple, and Meta. Microsoft shares climbed 2.2%, Apple rose 1.1%, and Meta edged higher. Optimism was also supported by upbeat results from General Motors and UPS.
However, UnitedHealth plunged 19.6%, dragging on the Dow, after issuing weaker revenue guidance despite slightly better-than-expected earnings. The decline was exacerbated by a Trump administration proposal signaling flat Medicare Advantage rates. Meanwhile, U.S. consumer confidence fell sharply, with the Conference Board index dropping to 84.5 in January from 94.2 in December, its lowest since May 2014.
Semiconductor stocks substantial moved upwards, with the Philadelphia Semiconductor Index surging by 2.4% to a new record closing high. Computer hardware and networking stocks also saw significant strength, contributing to the advance by the tech-heavy Nasdaq. Oil service stocks moved sharply higher along with the price of crude oil, driving the Philadelphia Oil Service Index up by 2%. Healthcare, airline and housing stocks came under considerable selling pressure over the course of the session.
Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index advanced by 0.9%, Hong Kong's Hang Seng Index jumped by 1.4% and South Korea's Kospi surged by 2.7%. Most European stocks also moved to the upside on the day. The U.K.'s FTSE 100 Index climbed by 0.6% and the French CAC 40 Index rose by 0.3%, although the German DAX Index bucked the uptrend and dipped by 0.2%.
In the bond market, treasuries moved modestly lower over the course of the session. As a result, the yield on the benchmark ten-year note which moves opposite of its price, inched up 1 bps to 4.22%.