US stocks advanced Tuesday as technology shares rallied and investors look ahead to Nvidia Corp. earnings on Wednesday.
The Nasdaq 100 Index closed 0.6% higher in New York after gaining as much as 1.1% earlier in the session. Nvidia was among the notable gainers, ending the session up 2.2%, as the chipmaker snapped its longest losing streak since 2022 ahead of reporting results Wednesday evening. The S&P 500 Index rose 0.3%.
Brent fell to about $87 per barrel as the New York Times reported that the US is preparing to send diplomats back to embassies in the Middle East. This suggests Washington does not expect full-scale conflict to flare up in Iran. Meanwhile, Treasuries gained as the decline in crude oil eased inflation concerns.
"This week is providing a better backdrop for yields to respond positively to the Treasury's buyback plans as lighter-than-expected economic data and sinking oil prices lift momentum in the fixed-income complex," said José Torres, senior economist at Interactive Brokers.
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Data released Tuesday showed consumer confidence fell to a seven-month low in August on a deteriorating outlook for business conditions and the labor market. The Conference Board's gauge of confidence decreased 0.8 points to 89.4 after a downward revision to the prior month.
Meanwhile, a measure of expectations for the next six months fell to the lowest level since January, even as an indicator of present conditions rose to a four-month high.
"Consumers are optimistic about today but increasingly nervous about tomorrow," said Jeffrey Roach, chief economist at LPL Financial. "Although employment conditions remain solid, fading expectations for income growth may act as a headwind to spending."
Seeking 'Roadmap on Rates'
Friday will be the annual Jackson Hole Symposium, where Kevin Warsh will deliver his first major speech as Federal Reserve chairman. Warsh faces criticism that he has not been forthright about his views on the economy.
The conference is "less about immediate policy and more about understanding the longer-term direction of monetary policy, central bank thinking and the implications for investors," said Ajith Nair, chief investment officer at Isio.
Nair noted investors will be keen on assessing if Warsh's previous references to a "regime change" will mean a departure from communication style and policy framework of recent years. Due to this, Nair said it would be surprising if Warsh provided explicit guidance on the next rate decision or near-term path of monetary policy.
"For investors hoping for a clear roadmap on rates, the message may therefore prove somewhat frustrating," said Nair.
Separately, traders will be closely watching results from Nvidia as a measure of the health of the AI trade. However, as Innovation Investor's Luke Lango explains, good numbers alone will not be enough.
"We expect the core results to be unquestionably strong, but the stock's reaction will hinge on Jensen Huang's ability to neutralize those three concerns and restore confidence in the long-term story," Lango said.
In terms of single stocks, Dick's Sporting Goods Inc. plunged a record 31% after cutting its full-year outlook amid weakness at its recently acquired Foot Locker unit. The result pulled names such as Nike Inc. and Under Armour Inc. lower.
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Meanwhile, Moderna Inc. shares surged 14% after the drugmaker was upgraded to peerperform at Wolfe Research. Apnimed Inc. rose 6.8% as the sleep-focused drugmaker received a slew of bullish initiations across Wall Street.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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