Chipmaker Gains and Lower Oil Prices Lift US Stocks

US stocks extended their rally for a second consecutive session on Tuesday, October 27, as gains in semiconductor shares and falling crude oil prices supported major indexes. Investors responded to news of financing linked to Anthropic's technology purchases while awaiting the Federal Reserve's interest rate decision and updated policy statement.

At 19:25 GMT, the Dow Jones Industrial Average stood at 52,383.96, up 22.38 points, or 0.04%. The S&P 500 rose 42.98 points, or 0.56%, to 7,719.75, while the Nasdaq Composite gained 293.336 points, or 1.12%, to 26,462.718, according to the source report.

Technology shares led the advance for a second day. Monday's rally followed Anthropic's filing of documents outlining its plan to go public, while Tuesday's gains received additional support from news that a coalition of banks had announced $63 billion in financing for the purchase of Broadcom's technology for Anthropic, CNBC reported.

Lower oil prices provided another source of support for equities. West Texas Intermediate and Brent crude both declined after Iranian Supreme Leader Mojtaba Khamenei and senior national security official Mohsen Rezaei disclosed Iran's conditions for ending the conflict, according to the report.

Despite the gains, the Nasdaq Composite's daily technical chart continued to indicate a downward primary trend. The index would need to break above 26,778.90 to signal a shift toward an uptrend, while a decline below 25,866.15 would indicate a resumption of the previous downtrend.

The index's immediate technical range extended from 25,866.15 to 26,778.90. Its retracement zone stood between 26,322.53 and 26,430.23, a range tested earlier in Tuesday's session, according to the technical analysis.

A sustained move above 26,430.23 could open the way toward the 50-day moving average. Conversely, a fall below 26,322.53 could expose the longer-term support level at 26,074.05, followed by a potential retest of the broader support range between 25,684.95 and 26,074.05.

The December E-mini Nasdaq-100 futures contract also advanced on Tuesday, although its primary trend remained downward on the daily swing chart. The contract faced resistance at its 50-day moving average of 30,089.73, followed by a minor swing high at 30,113.00 and a major swing high at 30,225.00.

A break above 30,225.00 would signal a potential change in the futures contract's primary trend and bring the retracement zone between 30,301.75 and 30,612.00 into focus. A sustained move above 30,612.00 could position the contract to challenge its record high of 31,616.50. Failure to clear the 50-day moving average could instead expose support between 29,068.75 and 29,555.25.

December E-mini S&P 500 futures also rose, although the daily chart continued to indicate a downward primary trend. Friday's low of 7,648.50 became a new major bottom after two consecutive advances, while a move above 7,812.25 would signal a potential trend reversal.

The S&P 500 futures contract's 50-day moving average stood at 7,760.37. The near-term retracement zone between 7,773.00 and 7,802.50 represented a further resistance area, while the longer-term support zone extended from 7,584.00 to 7,632.00.

The Federal Reserve's upcoming interest rate decision and policy statement remained the next major event for investors. The source report noted that market conditions could change after the announcement, even as semiconductor gains and lower oil prices continued to support the two-day advance.