U.S. stocks closed with a mixed finish on Tuesday, with the S&P 500 rising 0.4% to come within 3% of its record set in July. The Dow Jones Industrial Average fell 0.2%, while the Nasdaq composite rose 0.8%. Oracle saw a significant jump of 11.4% to an all-time high after delivering better profit and revenue for the latest quarter than expected, leading the market along with gains from influential Big Tech stocks like Microsoft and Amazon.
However, banks weighed on the market as several executives made discouraging comments at an industry conference. JPMorgan Chase fell 5.2% after its chief operating officer expressed concerns about analysts’ expectations for its profit measures. Similarly, Goldman Sachs and Ally Financial also saw drops in their stock prices after executives mentioned issues with trading revenue and borrower struggles with inflation and the cost of living.
Energy producer stocks were also weak due to falling oil prices, with Brent crude near its lowest price since 2021. Oil prices have been sinking amid worries about global fuel consumption in a fragile economy, dragging down stocks like Exxon Mobil and Chevron. Overall, the S&P 500 rose 24.47 points to 5,495.52, while the Dow dropped 92.63 points to 40,736.96, and the Nasdaq composite added 141.28 points to 17,025.88.
Treasury yields eased in the bond market, with the 10-year Treasury yield falling to 3.64%. Investors are closely watching yields and stock movements ahead of the Federal Reserve’s meeting next week, where a cut in the main interest rate is expected for the first time since 2020. The focus of the Fed has shifted from tackling high inflation to safeguarding the economy, with discussions on the rate of the rate cut and its impact on preventing a recession.
Economists are waiting for reports on inflation this week, with expectations for a slowdown in consumer prices in August compared to July. The upcoming debate between Vice President Kamala Harris and former President Donald Trump is seen as a potential market catalyst, with the value of the U.S. dollar potentially affected by the outcome. Investors are also debating the impact of proposed policies from both candidates on the economy and the possibility of one party sweeping control of Congress and the White House.
In global stock markets, indexes fell in Europe after mixed performances in Asia. Stocks in Hong Kong and Shanghai rose after China’s exports grew for a fifth consecutive month, signaling growing demand abroad. The economic outlook remains uncertain as investors await further developments in U.S. markets and upcoming events like the Federal Reserve meeting and the presidential debate.
