The Dow Jones Industrial Average has achieved another milestone on its record closing journey, concluding the day marginally higher at 41,250.5. This is in the backdrop of investors digesting the latest economic data while eagerly anticipating Nvidia’s financial results. The previous day's record close has set a positive precedent for the market's momentum. In detail, both the S&P 500 and the Nasdaq Composite indices reflected this positive trend, rising by 0.2% each, settling at 5,625.8 and 17,754.8, respectively.
Technology stocks dominated the gainers this session, showcasing the sector's growing influence, while the energy sector witnessed a significant drop. Economic indicators have sparked optimism among traders, with a notable increase in US consumer confidence this month. Additionally, the annual inflation outlook has plummeted to its lowest level in nearly four-and-a-half years, as highlighted by the latest report from the Conference Board. Real estate data unveiled another record as US home prices soared to a 'new all-time high' in June.
However, signs of a deceleration in growth were evident, both sequentially and annually, according to data released by the S&P Dow Jones Indices, a division of S&P Global. Contrastingly, the Federal Housing Finance Agency reported a minor decline in home prices by 0.1% on a seasonally adjusted basis in June, departing from a flat reading observed in the previous month.
The anticipated rise was forecasted at 0.1% as per a survey conducted by Bloomberg. In a slightly disheartening development, manufacturing activity in the US Mid-Atlantic region experienced an unexpected downturn, with data from the Federal Reserve Bank of Richmond indicating a deeper contraction in August due to declining orders. In bond markets, the 10-year US treasury yield increased by 1.1 basis points to settle at 3.83% on Tuesday, as the two-year rate fell by 3.3 basis points to reach 3.90%. Investors are gearing up for Nvidia’s earnings report scheduled for Wednesday, an event that could significantly impact market sentiments.
Additionally, other notable companies such as Salesforce, CrowdStrike, and HP are also set to reveal their financial performance. In the commodity markets, West Texas Intermediate crude oil saw a decrease of 2.1%, dropping to $75.79 a barrel. Turning to company-specific news, shares of Insulet surged by 6.6%, making it the second-highest gainer in the S&P 500 index.
This rise came after Insulet received clearance from the US Food and Drug Administration for its Omnipod 5 automated insulin delivery system aimed at adults with type-2 diabetes. Meanwhile, Paramount Global's class B shares faced a setback, declining 7.2% as it became the second steepest drop in the S&P 500.
This decline followed the conclusion of the 'go-shop' period in its Skydance Media merger agreement after a competing buyout offer led by Edgar Bronfman Jr. was withdrawn. Class A shares of Paramount also suffered, closing 7.3% lower. A substantial drop was observed in American Woodmark’s shares, which plummeted almost 11% after the cabinet maker reported fiscal first-quarter results that fell short of expectations year over year.
The company has concurrently lowered its full-year guidance amid evident weakness in the home remodeling market. In precious metals, gold experienced a slight uptick of 0.2%, reaching $2,560.50 per troy ounce. Meanwhile, silver remained stable, showing little fluctuation as it steadied at $30 per ounce..