The Dow Jones Industrial Average achieved another record closing high on Tuesday as market participants closely examined the latest economic data while preparing for Nvidia's ($NVDA) forthcoming financial results. This benchmark index experienced a modest uptick of 0.02%, closing at 41,250.5, following a record close in the prior session.
Meanwhile, both the S&P 500 and the Nasdaq Composite saw gains of 0.2%, finishing at 5,625.8 and 17,754.8, respectively. Technology emerged as the leading sector in this upward trend, while the energy sector faced the sharpest decline, highlighting a clear division among industry performances. In recent economic updates, US consumer confidence exhibited an increase this month, reflecting more positive sentiment among consumers.
Additionally, the annual inflation outlook has dropped to its lowest level in nearly four-and-a-half years, according to findings from the Conference Board. This decline in inflation expectations could signify easing financial pressures on consumers moving forward. On the housing front, S&P Global's division S&P Dow Jones Indices reported that US home prices surged to an unprecedented "new all-time high" in June.
However, the rate of growth has eased, indicating a slowdown in the previously robust housing market both sequentially and annually. In contrast, the Federal Housing Finance Agency disclosed a slight decline in home prices, reporting a decrease of 0.1% on a seasonally adjusted basis in June, which followed last month’s stable readings.
These mixed signals reflect a complex landscape within the real estate sector, as highlighted by the consensus survey conducted by Bloomberg, which projected a 0.1% increase. Moreover, manufacturing activity in the US Mid-Atlantic region unexpectedly experienced a deeper contraction in August, exacerbated by declining order volumes, according to the Federal Reserve Bank of Richmond.
This trend may raise concerns regarding the broader economic outlook and could impact employment and production moving forward. In the bond market, the US 10-year yield climbed 1.5 basis points to reach 3.83%, while the two-year rate saw a decrease of 2.6 basis points, settling at 3.91%. These movements in yield rates can be vital indicators of investor sentiment regarding future economic conditions. As for Nvidia, the company is eagerly anticipated to release its earnings report on Wednesday, alongside several other significant firms such as Salesforce ($CRM), CrowdStrike ($CRWD), and HP ($HPQ).
Investors will be keen to gauge how these tech giants are managing in the current economic climate. In the commodities market, West Texas Intermediate crude oil prices decreased by 2.2%, trading at $75.70 a barrel on Tuesday, indicating ongoing fluctuations in energy prices amid global uncertainties. In corporate news, Insulet ($PODD) made headlines as its shares soared by 6.6%, marking it as the second-highest gainer on the S&P 500.
The surge followed the announcement that the US Food and Drug Administration had approved its Omnipod 5 automated insulin delivery system for adult patients with type-2 diabetes, demonstrating the company’s innovative advancements in healthcare technology. However, not all companies fared well as Paramount Global's ($PARA, $PARAA) class B shares fell 7.1% on Tuesday, positioning it as the second-largest decline within the S&P 500.
The company disclosed that its 'go-shop' period linked to the Skydance Media merger agreement has concluded, following the withdrawal of a competing buyout offer from a coalition of investors led by Edgar Bronfman Jr. This news was reflected in Paramount's class A shares, which closed down by 7.3%. Similarly, American Woodmark ($AMWD) faced challenges, with its stock plummeting nearly 11% after reporting fiscal first-quarter results that reflected a decrease year over year.
The company has also revised its full-year guidance downward amidst evident weakness in the home remodeling market, which is a critical sector for economic recovery. On the commodities front, gold prices edged up by 0.2%, reaching $2,560.60 per troy ounce, while silver prices remained relatively stable at $30.46 per ounce, suggesting a steady interest in precious metals as potential safe-haven assets during periods of economic uncertainty..