The Nasdaq Composite led a Wall Street rebound on Tuesday, rising on a tech rally, falling oil prices and a bond market recovery. Investors held back from bigger moves ahead of Nvidia's quarterly results and July's core PCE inflation reading, both due Wednesday.
Nasdaq leads a broad recovery
Wall Street largely recovered from a mixed showing in the previous session, helped by a rebound in technology stocks and a drop in oil prices and Treasury yields. At 14:22 ET, the Nasdaq Composite rose 0.5% to 26,096.16 points. The S&P 500 added 0.2% to 7,667.54 points, and the Dow Jones Industrial Average advanced 0.2% to 53,530.28 points.
Traders largely held off major moves a day ahead of Nvidia's quarterly results and key inflation data. Meanwhile, escalating trade tensions between Washington and Ottawa kept traders on alert, after Canada unveiled up to 50% retaliatory tariffs on nearly $28 billion worth of U.S. goods.
Nvidia snaps its longest losing streak since 2022
Memory and semiconductor stocks pressured the sector on Monday, but shares rebounded Tuesday. Nvidia stock climbed nearly 2%, snapping a seven-day losing streak — its longest such slide in nearly four years. According to Michael O'Rourke, chief market strategist at Jones Trading: "Nvidia is leading that rally now as it bounces ahead of earnings".
The company reports results Wednesday, a major test for the artificial intelligence trade. Its quarterly revenue is anticipated to nearly double year over year to around $92 billion, and anything short of a blowout could disappoint investors. The AI trade has been volatile this year: after a rally in April, May and June, the Philadelphia Semiconductor Index crashed more than 20% in July amid concerns over returns on AI infrastructure spending.
Yields fall, confidence slips
U.S. Treasury yields slid for a second straight day, extending a bounce from last week's sell-off. Attention now turns to Wednesday's core PCE price index and Fed Chair Kevin Warsh's Jackson Hole address on Friday.
Separately, the Conference Board's consumer confidence gauge ticked down to 89.4 in August from 90.2 in July, its lowest reading since January.
Source: Investing.com
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