Ten companies boasted a strong performance in Tuesday’s trading session, defying a generally pessimistic wider market sentiment, on the back of key economic developments that spilled over to their stocks.

Only the Dow Jones finished in the green among all major indices, jumping by 0.91 percent. In contrast, the S&P 500 and the tech-heavy Nasdaq both dropped by 0.11 percent and 0.82 percent, respectively.

In this list, we highlight the names of the 10 best-performing stocks and detail the reasons behind their gains.

To come up with the list, we considered only stocks with at least $2 billion in market capitalization and over 5 million shares in trading volume.

10. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)

Polestar Automotive rebounded by 6.54 percent on Tuesday to close at $1.14 apiece as investors cheered the European Union’s (EU) supposed approval of President Donald Trump’s trade arrangement, as the deadline for a trade deal with the US looms for the bloc.

According to a report by Bloomberg, the EU would accept Trump’s 10-percent universal tariff on all US imports, but wants Washington to commit to lower rates on key sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft.

The EU was said to be pushing the US for quotas and exemptions to effectively lower the 25-percent tariff on automobiles and car parts, as well as the 50-percent tariff on steel and aluminum imports.

Investors took the development positively, spilling over to Europe-based companies, including Polestar Automotive Holding UK PLC (NASDAQ:PSNY), as the bloc scrambles to reach a trade agreement by the July 9 deadline.

Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is a Sweden-based electric vehicle maker owned by Volvo Cars and Geely.

9. Cleveland-Cliffs Inc. (NYSE:CLF)

Cleveland-Cliffs rallied for a second day on Tuesday, adding 6.84 percent to close at $8.12 apiece as investors cheered the official launch of its $150-million finishing line at an Ohio mill.

The facility is a state-of-the-art Vertical Stainless Bright Anneal Line at its Coshocton Works facility in Coshocton, Ohio, and is ready to supply premium stainless steel for high-end automotive and critical appliance applications.

According to Cleveland-Cliffs Inc. (NYSE:CLF), the new annealing line uses a 100 percent hydrogen atmosphere, replacing the conventional acid-based processing, and includes a hydrogen recovery unit to recycle hydrogen and use a 50/50 mix of new and used hydrogen in the process.

“Since acquiring AK Steel in 2020, our stainless steel business has been the most consistent profit-generating unit for Cleveland-Cliffs. This new line at Coshocton only enhances that, with an expected quick payback on this major investment,” said Cleveland-Cliffs Inc. (NYSE:CLF) President and CEO Lourenco Goncalves.

“By using hydrogen and advanced automation, we’re dramatically improving the quality and productivity of this critical product that our customers rely upon Cleveland-Cliffs for. As we embrace the new competitive landscape in the domestic steel industry, our profitability prospects are only getting stronger,” he underscored.

8. MGM Resorts International (NYSE:MGM)

MGM Resorts extended its winning streak to a third straight day on Tuesday, adding 7.27 percent to close at $36.89 apiece as investors cheered higher-than-expected gaming revenues in Macau.

According to data released by Macau’s Gaming Inspection and Coordination Bureau, gross gaming revenues (GGR) increased by 19 percent in June to 21.06 billion patacas ($2.6 billion), or a $417-million difference from the same period last year.

Part of the surge was attributed to the series of concerts by Cantopop icon Jacky Cheung, which began in mid-June and will continue until early July. According to Macao Daily, GGR from June 15 to 22 alone reached an average of 685 million patacas per day.

Following the news, shares of casino operators such as MGM Resorts International (NYSE:MGM), Las Vegas Sands (NYSE:LVS), and Wynn Resorts (NASDAQ:WYNN) all surged.

7. Bath & Body Works, Inc. (NYSE:BBWI)

Bath & Body Works jumped by 7.31 percent on Tuesday to close at $32.15 apiece as investor sentiment was largely fueled by the improving trade relations between the US and its key trading partners.

On Tuesday, Bloomberg reported that the European Union was open to accepting President Donald Trump’s trade arrangement as the two parties scramble to reach an agreement by the July 9 deadline, although it wants the US to lower tariffs on critical industries such as automotive, steel, and aluminum.

The trade negotiations followed the US’s trade deals with the UK and China earlier last month, sparking hopes for broader global trade stability.

The development spilled over to companies with high exposure to international trade, such as Bath & Body Works, Inc. (NYSE:BBWI), as improving trade relations sparked confidence for their future growth.

It can be recalled that Bath & Body Works, Inc. (NYSE:BBWI) previously lowered its annual sales forecast below expectations amid uncertainties in consumer spending due to the global trade tensions. While the majority of its products are produced in the US, it sources components from other countries.

6. Snap Inc. (NYSE:SNAP)

Snap Inc., operator of Snapchat, jumped by 7.59 percent on Tuesday to close at $9.35 apiece as investors scooped up shares following a higher price target from an investment firm.

In its market note on Tuesday, Wells Fargo raised its price target for the company to $11 from $8 previously, while maintaining an “equal weight” rating on its stock. The price target marked a 17.6 percent upside from its latest closing price.

The adjustment reflected Snap Inc.’s (NYSE:SNAP) revenue growth forecast for the quarter, having raised it to 13 percent from 6 percent previously.

Wells Fargo, for its part, expects Snap Inc. (NYSE:SNAP) to register $165 million in subscription revenues for the second quarter of the year, with direct response advertising growing 13 percent year-on-year.

Additionally, it targets Snap Inc. (NYSE:SNAP) to deliver $76 million in EBITDA, and third-quarter revenue guidance of $1.54 billion to $1.58 billion, or a 12-15 percent year-on-year growth.

5. Builders FirstSource, Inc. (NYSE:BLDR)

Builders FirstSource rallied by 8.76 percent on Tuesday to close at $126.91 as investors gobbled up shares amid an analyst comment that the stock is currently undervalued.

In a market report on Tuesday, Zacks Research assigned a “B” grade to Builders FirstSource, Inc. (NYSE:BLDR), in the belief that the stock is currently “trading at a discount to its peers.”

The assessment is a value style score that pays close attention to both traditional and unconventional valuation metrics, with grade A being the highest and grade F being the lowest.

In line with the rating, Builders FirstSource, Inc. (NYSE:BLDR) currently bears a Zacks Rank #3 or a “hold” recommendation on its stock on expectations that it may perform in line with the broader market in the near term.

Builders FirstSource, Inc. (NYSE:BLDR) is one of the leading suppliers of structural building products in the US. Its 600 stores are present across 43 states in the US.

4. Wynn Resorts Ltd. (NASDAQ:WYNN)

Wynn Resorts saw its share prices surge by 8.85 percent on Tuesday to finish at $101.96 apiece as investor sentiment was fueled by the surge in Macau gaming revenues last month.

During the session, Wynn Resorts Ltd. (NASDAQ:WYNN) rallied alongside its peers after the Gaming Inspection and Coordination Bureau of Macau reported a 19 percent or a $417-million increase in gross gaming revenues (GGR) in June, at 21.06 billion patacas ($2.6 billion) versus the same period last year.

Part of the surge was attributed to the series of concerts by Cantopop icon Jacky Cheung, which began in mid-June and will continue until early July. According to Macao Daily, GGR from June 15 to 22 alone reached an average of 685 million patacas per day.

The positive news spilled over to casino operators MGM Resorts International (NYSE:MGM) and Las Vegas Sands (NYSE:LVS) on optimism that the higher GGR would reflect in their financial performances in the second quarter of the year.

3. Las Vegas Sands Corp. (NYSE:LVS)

Las Vegas Sands jumped by 8.89 percent on Tuesday to close at $47.38 apiece as investors scooped up shares following news that Macau’s gaming revenues in June surged by 19 percent year-on-year.

On Tuesday, the Gaming Inspection and Coordination Bureau of Macau said that gaming revenues last month increased by $417 million to close at 21.06 billion patacas or $2.6 billion.

Part of the surge was attributed to the series of concerts by Cantopop icon Jacky Cheung, which began in mid-June and will continue until early July. According to Macao Daily, GGR from June 15 to 22 alone reached an average of 685 million patacas per day.

Las Vegas Sands Corp. (NYSE:LVS) rallied alongside its counterparts, namely MGM Resorts International (NYSE:MGM) and Wynn Resorts Ltd. (NASDAQ:WYNN), on expectations that the higher GGR would reflect in their financial performances in the second quarter of the year.

2. Sunrun Inc. (NASDAQ:RUN)

Sunrun soared by 10.51 percent on Tuesday to finish at $9.04 each as investors cheered the exclusion of excise taxes on wind and solar projects in the One Big Beautiful Bill Act.

The proposed measure, which was narrowly passed in the Senate ahead of the looming July 4 deadline, surprisingly excluded excise taxes that would have been slapped on wind and solar projects constructed with a certain percentage of materials sourced from China.

The bill, however, would still cut tax credits, albeit not as soon as the expected end-of-December deadline, as projects that have already been planned, financed, and approved will continue to receive applicable tax credits as long as they begin construction before June 2026 and become operational by 2027.

In recent news, Sunrun Inc. (NASDAQ:RUN) announced the switch-on of 130,000 home batteries to support the country’s power grid this summer. This represented more than two-thirds of its total battery fleet.

In its grid service programs, Sunrun Inc. (NASDAQ:RUN) stated that it is capable of dispatching 650 megawatts of peak power, sufficient to energize 480,000 homes at critical times daily, supporting the expected higher demand for electricity.

1. Melco Resorts & Entertainment Ltd. (NASDAQ:MLCO)

Melco Resorts & Entertainment jumped by 11.48 percent on Tuesday to close at $8.06 apiece amid a flurry of catalysts, including a price and rating upgrade, that boosted investing appetite.

In its market note, investment firm JPMorgan upgraded its rating and price target for Melco Resorts & Entertainment Ltd. (NASDAQ:MLCO) to “overweight” from “neutral” previously, with a higher price target of $9.5 versus $7.2 prior on expectations that the stock still has room to grow higher. The new price target marked a 17.86 percent upside from its latest closing price.

Meanwhile, investor sentiment was further supported by Macau’s announcement earlier in the week that gross gaming revenues across the industry surged by 19 percent to 21.06 billion patacas or $2.6 billion, partly driven by the series of concerts by Cantopop icon Jacky Cheung, which began in mid-June and will continue until early July.

Investors expected higher GGR revenues for June to reflect in Melco Resorts & Entertainment Ltd.’s (NASDAQ:MLCO) financial performance during the past quarter.

While we acknowledge the potential of MLCO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MLCO and that has 100x upside potential, check out our report about the cheapest AI stock.

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