-
US stocks reached new records on Tuesday, led by gains in Nvidia.
-
A weak consumer confidence reading caused indexes to briefly drop early morning.
-
Emerging market stocks notched their highest level in two years on China’s stimulus plan.
US stocks kept up their winning streak on Tuesday, with indexes pushing higher to new records.
The gains weren’t locked in from the start, however, as early-morning economic data briefly drove the S&P 500 and Nasdaq index into the red.
Investors reacted with dismay after the latest consumer sentiment reading, with confidence among US consumers logging its largest one-month drop in more than three years.
The Conference Board’s consumer confidence index came in at 98.7 for September, well below consensus estimates of a 104 reading.
“It’s never good to see consumer confidence fall this much. Consumers are clearly concerned about the implications of the upcoming election, the increasing conflict around the world, and the stubbornly high cost of food and credit,” said Jamie Cox, managing partner for Harris Financial Group.
“The Federal Reserve seldom reads the tea leaves correctly on when and how much to cut rates, but 50 seems more correct in light of these data.”
Markets appear to be in agreement, and the odds of a half-point cut in November climbed to 60.7%, according to the CME FedWatch Tool.
However, after the dip, the market bounced back later in the day with a nearly 5% rally in Nvidia helping investors push past the discouraging consumer update.
The chipmaker ended the day up by about 4%, jumping on news that its CEO Jensen Huang was done selling stock for now. Under a predetermined trading plan, the executive was authorized to sell 6 million Nvidia shares through early next year — but he just met that threshold, Barron’s first reported.
Outside of the US, emerging equity markets logged big gains. The stocks hit their highest level since 2022 as China announced its biggest stimulus package to revive its ailing economy.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
Here’s what else is going on:
In commodities, bonds, and crypto:
-
Oil futures were up. West Texas Intermediate crude oil jumped 1.71% to $71.56 a barrel. Brent crude, the international benchmark, increased 1.72% to $75.17 a barrel.
-
Gold rose 1.29% to $2,687.8 an ounce.
-
The 10-year Treasury yield was flat at 3.734%.
-
Bitcoin gained 1.55% to $64,305.
Read the original article on Business Insider
