The Nasdaq composite advanced 0.4% in Tuesday morning trading, holding its 50-day moving average as falling Treasury yields and a drop in oil prices lifted sentiment. Nvidia reversed a seven-day losing streak ahead of its earnings report. New home sales and consumer confidence data both came in below expectations.
The Dow Jones Industrial Average rose less than 0.1% Tuesday. The S&P 500 gained 0.1%, and the tech-heavy Nasdaq composite advanced 0.4% in morning trading, finding support at its 50-day moving average. The small-cap Russell 2000 added 0.3%.
Yields and oil drop, Nvidia reverses higher
The 10-year Treasury yield fell five basis points to 4.65%, easing pressure on equities. West Texas Intermediate crude futures slipped to around $82.45 a barrel after President Donald Trump's economic sanctions on Iran. Bitcoin, meanwhile, climbed to around $79,200.
Nvidia rose more than 1% on the Dow, reversing its seven-day losing streak ahead of Wednesday's earnings report. The stock had bounced more than 1% premarket, attempting to recover from Monday's 2.9% sell-off.
Chip names lead the Nasdaq's advance
Chip stocks rallied as traders awaited Nvidia's report. Sandisk and Micron each advanced nearly 2%, though both remain below their 50-day moving averages. Coherent and Ciena gained 3% to 4%.
Super Micro Computer surged 8%, retaking its 50-day line. Among Nasdaq-100 stocks, AMD jumped nearly 4%, and Marvell Technology climbed almost 6%.
On the Dow, Merck and Goldman Sachs gained 1% to 2% each. Nike dropped nearly 3%. Walmart lost almost 2% as it continued to suffer from a negative reaction to last week's earnings.
Housing and confidence data miss forecasts
New home sales for July disappointed at 607,000, missing economist forecasts of 620,000 even after a predicted decline. The Conference Board's consumer confidence reading fell to 89.4, also below the lowered expectation of 90.1.
Source: Investor's Business Daily
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