Wall Street settles higher as chip stocks rally ahead of Nvidia results; oil, Treasury yields fall

US stocks climbed on Tuesday as crude oil prices fell and Treasury yields declined for the second consecutive day. Technology stocks also rallied ahead of Nvidia's earnings.

The Dow Jones Industrial Average settled 0.30% higher at 53,577.40, while the S&P 500 gained 0.32% to 7,677.28. The NASDAQ Composite added 0.66%, or 171.11 points, to 26,151.30.

The 10-year Treasury yield dropped over 7 points to 4.625% after CNBC reported that the US Treasury department could utilise its $1 trillion General Account to fund bond repurchases.

Brent Crude slid 2.62% to $86.26 per barrel. The West Texas Intermediate (WTI) descended 2.5% to $80.30 a barrel.

Semiconductor stocks rose ahead of Nvidia's earnings on Wednesday. Nvidia gained 2.19% to $213.05 per unit, while Advanced Micro Devices surged 4.91%. Micron Technology added 2.48%.

Consumer stocks like Target and Walmart were down 3.78% and 1.04%, respectively. This comes after Canada announced a counter-tariff on US goods in retaliation to the latest levies on Canadian imports imposed by US President Donald Trump.

The Canadian tariff as high as 50% will apply to around $20 billion worth of American products, ranging from steel to fresh tuna, cotton T-shirts and furniture.

Trump on Tuesday announced that beginning January 1, 2027, he would double tariffs on Canadian goods like vehicles, automotive parts and steel.

"Canada has been ripping off the United States of America for years. Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE! On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," he said.

"Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer! On Trade, and in other ways, also, they are among the worst Nations in the World to deal with," he added.