Wall Street stocks stumbled on Tuesday, while the Dow Jones Industrial Average stayed close to the all-time high it reached the day before.
In morning trade, the S&P 500 increased by 0.1%. The Dow Jones Industrial Average dropped by 0.1%, or 18 points. As of 10:34 a.m. Eastern, the Nasdaq increased by 0.1%.
Technology stocks were lurching. They tend to drive indexes, such as the Nasdaq and S&P 500 and have a disproportionate impact on the overall market due to their large prices.
On Wednesday, Nvidia, a semiconductor corporation with a market valuation of over $3 trillion, will release its most recent financial results. It increased by 0.8%. The artificial intelligence frenzy on Wall Street has contributed to the stock’s 157% increase this year.
Edgar Bronfman Jr., the former CEO of Warner Music Group, withdrew his bid for the Paramount movie studio, allowing media company Skydance to acquire it. As a result, the parent company of the studio fell 5.3%.
Interest rates on Treasury bonds increased. Late on Monday, the yield on the 10-year Treasury increased from 3.82% to 3.86%.
Business research firm The Conference Board reported on Tuesday that its consumer confidence index increased from 101.9 in July to 103.3 in August. The better-than-expected results could support the belief that consumers are robust even in the face of inflationary pressure.
In the US, consumer spending makes up around 70% of total economic activity. Together with the jobs market, that has been a robust part of the economy.
This week’s most important economic report for investors will be the personal consumption and expenditures (PCE) report for July, which the government will release on Friday along with its most recent inflation statistics. The Federal Reserve, which has hinted at the impending arrival of long-awaited interest rate decreases, uses it as its favourite inflation indicator.
Since the central bank increased its benchmark rate to the highest point in two decades, interest rates have been gradually declining over the last two years. The economy has weathered both inflation and rising borrowing costs, which has helped the Fed get closer to its objective of controlling inflation without inducing a recession.
At its upcoming meeting in September, traders anticipate that the Fed will begin reducing interest rates, with a potential reduction of up to 1% by year’s end.
In general, European markets were higher. Following news that the nation’s gross domestic product shrank by 0.1% in the second quarter, Germany’s DAX increased by 0.5%.
Asia’s markets were diverse.
Amidst slow domestic demand, a housing crisis, and job concerns, China’s industrial earnings increased 4.1% in July over the same month last year, while the country’s overall profits for the first seven months increased 3.6%. These developments gave investors hope.
However, more tariffs on China are obscuring its prospects for manufacturing. On Monday, Canada declared that it would impose a 25% tariff on Chinese steel and aluminium imports and a 100% tariff on Chinese electric vehicle imports. These tariffs would go into effect on October 1.
