US stocks edged higher on Tuesday but the advance stayed selective as investors balanced strong earnings, fresh AI optimism, and renewed uncertainty around the Middle East.
The Dow Jones Industrial Average rose about 0.6% in morning trading while the S&P 500 added roughly 0.2% and the Nasdaq Composite gained about 0.1%. The move kept the benchmark near record territory after the S&P 500 closed above 7,000 for the first time last week.
Market momentum stayed concentrated in a limited group of stocks which reinforced the view that investors still showed caution even as indexes held near highs. That tone appeared in trading activity, investor positioning and the narrow group of names driving the latest leg higher.
J.P. Morgan added to the bullish backdrop on Tuesday by raising its year-end S&P 500 target to 7,600 from 7,200, citing stronger earnings and AI-led growth.