As of midday on Tuesday, U.S. stock markets are experiencing gains, predominantly driven by commendable performances within the technology sector, which has bounced back robustly following prior declines. Conversely, several energy sector stocks are facing downward pressure due to falling oil prices.
This week promises significant market activity, spurred by key corporate earnings announcements and pivotal economic data releases, including reports on consumer and producer price inflation. This could overshadow any geopolitical concerns.
In terms of major indices, the Dow Jones Industrial Average has climbed 76.66 points, or 0.18%, reaching 42,030.90. The S&P 500 has advanced by 45.34 points, or 0.8%, arriving at 5,741.28. The Nasdaq Composite has risen 228.04 points, or 1.27%, to 18,151.94.
Key performers include NVIDIA, up by 3.5%, and Palo Alto Networks, which has increased nearly 5%. Stocks like Netflix, Adobe, Airbnb, Autodesk, and Intuit are also showing gains of 2% to 3%. Additionally, Delta Airlines, Broadcom, United Airlines Holdings, and Humana are experiencing notable upticks.
PepsiCo shares are up about 1.3%, following its announcement that it recorded a net income of $2.930 billion, or $2.13 per share, compared to $3.092 billion, or $2.24 per share, during the same quarter last year, surpassing market expectations.
On the downside, Moderna, ON Semiconductor, and Global Foundries are notably weaker. Energy companies such as Marathon Oil, ConocoPhillips, Valero Energy, and Super Micro Computer are also underperforming.
Economically, the U.S. trade deficit narrowed to $70.4 billion in August 2024—the lowest in five months—from a revised $78.9 billion in July. This shift is attributed to a 2% increase in exports, reaching a record high of $271.8 billion, while imports decreased by 0.9% to $342.2 billion.
Internationally, Asian markets saw declines on Tuesday, led by losses in Hong Kong. The market responded to the Chinese National Development and Reform Commission's pledge for further economic support in China, which, however, lacked concrete specifics.
Meanwhile, the dollar hovered near a seven-week peak, and gold prices saw slight declines following a Federal Reserve official's recommendation for a cautious approach concerning interest-rate reductions.
Investors are anticipating critical U.S. inflation figures and the Federal Reserve’s latest meeting minutes this week, seeking further insight into the central bank’s interest rate strategy.
Major European markets have also edged lower amidst ongoing Middle East concerns and a lack of new significant stimulus plans from China’s state planning agency.
