Wall Street closed sharply higher on Tuesday, led by materials, healthcare and chip stocks. Memory and storage stocks advanced as fresh optimism over artificial intelligence (AI)-driven demand lifted leading memory and chipmakers. Oil prices slipped from the previous session’s highs. All three benchmark indexes finished in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 1%, or 484.9 points, to close at 49,462.08. Twenty-three components of the 30-stock index ended in positive territory, while seven ended in the negative. It was yet another record close for the Dow.

The tech-heavy Nasdaq Composite gained 151.35 points, or 0.7%, to close at 23,547.17.

The S&P 500 added 42.77 points, or 0.6%, to close at 6,944.82. Seven of the 11 broad sectors of the benchmark index closed in the green. The Materials Select Sector SPDR (XLB), the Health Care Select Sector SPDR (XLV) and the Industrials Select Sector SPDR (XLI) advanced 2%, 2% and 1.4%, respectively, while the Energy Select Sector SPDR (XLE) receded 2.8%.

The fear gauge CBOE Volatility Index (VIX) decreased 1% to 14.75. A total of 18.7 billion shares were traded on Tuesday, higher than the last 20-session average of 16.1 billion. Advancers outnumbered decliners by a 3.1-to-1 ratio on the S&P 500.

Memory and Storage Stocks Jump After Nvidia CES Reveal

Memory and storage technology stocks advanced on Jan. 6 after NVIDIA Corporation (NVDA Quick QuoteNVDA - Free Report) CEO Jensen Huang outlined new developments in data storage while speaking at the Consumer Electronics Show (“CES”) in Las Vegas. Huang highlighted the introduction of a new layer of storage technology designed to better support the growing demands of AI workloads, drawing strong interest from investors.

The remarks reinforced optimism around sustained AI-driven infrastructure spending, particularly in data centers where faster and more efficient memory solutions are critical. Companies linked to memory chips and storage hardware benefited as markets interpreted Nvidia’s comments as a signal of expanding opportunities across the semiconductor supply chain.

The rally also reflected confidence that innovation at the system level, not just in processors, will drive the next phase of AI growth. By emphasizing tighter integration between computing and storage, Nvidia’s outlook suggested rising demand for advanced memory and storage products, supporting gains across the sector as investors positioned for longer-term growth.

Consequently, shares of Western Digital Corporation (WDC Quick QuoteWDC - Free Report) and Sandisk Corporation (SNDK Quick QuoteSNDK - Free Report) rose 16.8% and 27.6%, respectively. Both currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Healthcare Stocks Rise on Moderna Rally

Healthcare stocks moved higher as Moderna, Inc.’s (MRNA Quick QuoteMRNA - Free Report) shares jumped 10.9% on analysts raising their price target on the vaccine maker. The upbeat outlook sparked renewed investor interest in the sector, helping lift the broader healthcare index and supporting gains across several major drug and biotech names.

Oil Prices Slip After Trump Announces Venezuelan Crude Transfer

Oil prices slid on Tuesday after President Donald Trump said Venezuela will turn over 30 million to 50 million barrels of sanctioned crude to the United States, signaling a potential rise in available supply that weighed on markets. WTI crude declined about 1.4% to around $56.35/barrel, while Brent crude fell roughly 1% to about $60.09, as traders interpreted Trump’s remarks as favoring increased supply over restrictions and stoking fears of global oversupply.

Economic Data

The S&P Services PMI for December was revised downward to 52.5 from the previously reported 52.9.