U.S. stock markets experienced broad gains during Tuesday's session, with the Dow Jones Industrial Average climbing more than 400 points mid-trade. Specifically, the Dow advanced by 0.86%, reaching 49,397.20 points. The technology-focused NASDAQ Composite saw a moderate rise of 0.45%, finishing at 23,500.32. Meanwhile, the S&P 500 index increased by 0.48% to close near 6,934.99.
Among sectors, the healthcare industry showed strong momentum, with shares collectively increasing by approximately 2%, reflecting investor interest in the space. Conversely, energy sector stocks declined, with a 1.2% decrease noted during the trading session.
Economic Indicators Highlight Slowing Services Sector
Economic data released on Tuesday revealed a softening in the U.S. services sector activity. The S&P Global Services Purchasing Managers' Index (PMI) dropped to 52.5 for December, falling from 54.1 in November. This figure trailed the earlier preliminary reading of 52.9 for the month. Furthermore, the composite PMI, which combines both services and manufacturing sectors, fell to 52.7 in December, marking an eight-month low and declining from 54.2 the previous month.
Complementing this trend, the Logistics Manager's Index registered a second consecutive monthly decline, reaching 54.2 in December from a steady 55.7 in October and November. These metrics collectively suggest a moderate deceleration in economic expansion within service-driven industries as the year closed.
Corporate Stock Movements: Winners and Losers
Certain individual equities demonstrated substantial volatility linked to recent announcements and operational developments. Alumis Inc. (NASDAQ: ALMS) emerged as the day's top gainer, with shares soaring 132% to close at $19.30. This surge followed the company’s announcement that the topline results from its Phase 3 ONWARD1 and ONWARD2 clinical trials for envudeucitinib, indicated for moderate-to-severe plaque psoriasis, successfully met all primary and secondary endpoints, reinforcing confidence in the drug’s potential.
Similarly, Aeva Technologies Inc. (NASDAQ: AEVA) experienced a notable 25% bump in its share price, ending at $16.30 after the firm disclosed that its Frequency Modulated Continuous Wave 4D LiDAR technology had been selected for inclusion in the NVIDIA DRIVE Hyperion autonomous vehicle reference platform. This integration positions Aeva as a significant technology provider in the autonomous driving ecosystem.
In the biotechnology sector, Cyclerion Therapeutics Inc. (NASDAQ: CYCN) shares climbed 47% to $2.04. The boost followed the company's announcement of an expansion in its strategic collaboration with Medsteer, aimed at advancing its closed-loop anesthetic platform, CYC-126. This partnership expansion underscores ongoing efforts to innovate within anesthetic drug delivery technologies.
On the downside, Instil Bio Inc. (NASDAQ: TIL) shares declined 51%, settling at $6.05. This retreat came after the company revealed that its subsidiary, Axion Bio, discontinued clinical development of AXN-2510. Additionally, Axion and ImmuneOnco Biopharmaceuticals mutually agreed to terminate their licensing and collaboration agreement related to AXN-2510 and AXN-27M, signaling a setback in their therapeutic pipeline.
Mobix Labs Inc. (NASDAQ: MOBX) stock fell 45% to $0.18 following the announcement of a $6.0 million offering consisting of 30 million shares of common stock priced by the company. This capital raise appears to have been met with investor caution, reflected in the sharp share price dip.
AngioDynamics Inc. (NASDAQ: ANGO) shares decreased by 15% to $11.22 post-release of the company's second-quarter results, suggesting investor concerns or adjustments based on the reported financial performance.
Commodity and International Market Performance
In commodities, oil prices slipped by 0.6%, closing near $57.95 per barrel. Gold gained approximately 1%, reaching $4,497.50. Among precious metals, silver advanced 4.4%, touching $80.01, while copper experienced a 1.5% increase to $6.0655.
Internationally, European markets reflected positive investor sentiment, with the region’s STOXX 600 index increasing 0.62%. Madrid-based IBEX 35 rose by 0.49%. London’s FTSE 100 led gains among major European indexes with a 1.15% rise. Germany's DAX and France's CAC 40 also advanced, posting respective gains of 0.25% and 0.28%.
Market action in Asia-Pacific was primarily positive as well. Japan's Nikkei 225 climbed 1.32%, Hong Kong's Hang Seng Index increased 1.38%, and China's Shanghai Composite surged 1.50%. Conversely, the Indian BSE Sensex declined by 0.44% amid varied regional economic factors.