The S&P 500 and Nasdaq Composite saw gains on Tuesday, driven by advances in technology stocks, as the market aims to build on a positive start to the week amid upcoming significant economic data releases.
In late-morning trading, the S&P 500 increased by 0.2%, and the Nasdaq Composite rose by 0.5%, while the Dow Jones Industrial Average declined by 0.4%. The previous day, following its worst week of the year, each major index had risen over 1%, largely due to a rebound in technology stocks.
On Tuesday, large-cap technology stocks displayed mixed performance. Nvidia, Microsoft, Alphabet, Amazon, and Broadcom enjoyed gains, while Meta Platforms and Apple experienced declines. Apple’s shares fell approximately 0.7% after the company announced a new AI-enabled iPhone while facing a $14 billion tax obligation due to a European Union ruling.
Oracle was a standout performer on Tuesday, with its shares surging by 12% following better-than-expected results for its fiscal first quarter and the announcement of a new partnership with Amazon Web Services.
The financial sector was a drag on the Dow, with JPMorgan Chase and Goldman Sachs shares dropping by 6% and 4%, respectively, while American Express fell by 3%.
The economic calendar is relatively quiet ahead of Wednesday’s consumer price index report, which Federal Reserve officials will closely analyze as they contemplate a potential cut to the federal funds rate for the first time in four years. Fed Chair Jerome Powell and other officials have indicated that rate cuts could be forthcoming as early as the upcoming meeting on September 18, though they have emphasized that the decision will depend on incoming data regarding the timing and scale of any reductions.
Market analysts currently estimate a 29% probability that the Fed will reduce the benchmark interest rate by 0.5% in the next week, according to CME Group’s FedWatch tool, which predicts interest rate changes based on trading data from fed funds futures.
The yield on 10-year Treasury bonds, which reflects expectations for interest rates, fell to 3.67%, down from 3.70% the previous day. It had previously dipped to as low as 3.65% on Friday, marking its lowest level in over a year following a disappointing jobs report for August.
In the commodities market, bitcoin prices slipped slightly to just under $57,000, while gold futures remained steady around $2,540. WTI crude oil futures fell about 4% to $66 per barrel, reaching a multi-year low.