U.S. stocks finished higher on Tuesday as technology shares powered a rebound in the broader market that propelled the Nasdaq Composite to its best day in nearly three weeks. The Dow rose 126.13 points, or 0.3%, to end at 42,080.37 at 4 p.m. Eastern time, according to FactSet data.

Wall Street's major averages trade higher, a day after chip stocks slumped on a disappointing outlook from ASML (ASML). Early on and the S&P 500 (SP500) was +0.2%, the Nasdaq Composite (COMP:IND) was near even,

The bond market may be at risk from inflationary forces beyond the Fed’s control. Here's the key consideration for short-term stock traders after Tuesday's modest pullback, Fawad Razaqzada, analyst at City Index and Forex.

Stock index futures traded cautiously, as traders assessed ASML's weak net sales guidance for 2025, which also pulled down chip stocks.