Wall Street closed higher on Tuesday, with technology stocks recovering from a recent selloff as investors positioned ahead of Nvidia’s quarterly results and found some relief from easing oil prices and Treasury yields.
The Dow Jones Industrial Average rose 160.24 points, or 0.30%, to 53,577.40, while the S&P 500 gained 24.38 points, or 0.32%, to 7,677.24. The Nasdaq Composite advanced 171.11 points, or 0.66%, to 26,151.30.
Nvidia climbed 2.2% ahead of its results due Wednesday, which investors are watching closely for signs of whether the artificial intelligence-driven rally can maintain its momentum. Meta Platforms gained almost 2%, while Micron Technology rose 2.5% and the Philadelphia Semiconductor Index added 1.4%.
Advanced Micro Devices jumped 4.9% after Raymond James upgraded the stock, while Moderna surged 14% after Barclays raised its price target following positive late-stage trial results for its skin cancer vaccine developed with Merck.
However, Dick’s Sporting Goods plunged 30.7% after cutting its annual forecasts, while Target fell 3.8% following backlash over a Halloween costume it subsequently pulled.
Investors were also monitoring the bond market after longer-dated Treasury yields eased alongside lower oil prices. The recent rise in yields had pressured growth and technology stocks and fuelled concerns over stretched valuations.
Nvidia’s results are expected to provide a key test for sentiment around the AI trade, with investors focused on revenue guidance, chip demand, profit margins and whether major cloud providers will continue increasing AI-related capital expenditure.
“There’s a lot of push and pull — in the bond market, geopolitics, oil,” said Joe Quinlan, head of market strategy for Merrill and Bank of America Private Bank.
Meanwhile, US consumer confidence fell to a seven-month low in August. Investors are also awaiting the Personal Consumption Expenditures report on Wednesday and Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole on Friday for further clues on inflation and monetary policy.
Market participants are currently pricing in one 25-basis-point rate increase by the end of the year, according to LSEG data.
Reuters
