In afternoon trading, US stocks displayed a mixed performance as investors considered a variety of economic indicators, corporate developments, and geopolitical events. The S&P 500 edged down 0.3% after briefly reaching a new peak, while the Nasdaq decreased by 0.5%, driven by a decline in semiconductor stocks. Notably, Applied Materials plunged 14% following a pessimistic forecast, and Nvidia saw a 2% drop. Conversely, the Dow Jones Industrial Average outperformed, climbing over 100 points and approaching its first record since December, buoyed by a significant 14% rise in UnitedHealth shares after Berkshire Hathaway revealed a substantial investment.
In terms of economic data, retail sales for July increased by 0.5%, aligning with expectations. However, the University of Michigan’s consumer sentiment index fell to 58.6 from 61.7, reflecting growing concerns over inflation. Investors were also cautious ahead of President Trump's meeting with President Putin, with additional trade uncertainties arising from his proposed tariffs on steel and semiconductors. Despite these challenges, all three major indexes were on track for weekly gains, driven by optimism surrounding a potential 25 basis points interest rate cut by the Federal Reserve in September, especially with healthcare stocks outperforming for the week.
