The Dow Jones Industrial Average and the S&P 500 closed at record highs Tuesday, reflecting the markets' analysis of the latest economic data. The Dow rose 0.2% to 42,208.2, while the S&P 500 advanced 0.3% to 5,732.9. The Nasdaq Composite saw a 0.6% increase, reaching 18,074.5. Among sectors, materials led the gainers, while financials experienced the steepest decline. In terms of economic indicators, U.S.
home prices have increased in July, marking the 14th consecutive month of record highs, despite the annual growth rate decelerating, according to the S&P Global division, S&P Dow Jones Indices. In a related statement, the Federal Housing Finance Agency reported that home prices edged up by 0.1% on a seasonally adjusted basis in July, revising June's previously noted 0.1% decrease to a flat level.
Market consensus had anticipated a 0.2% rise, as compiled by Bloomberg. August brought a slight improvement to housing affordability in the U.S., following a decline in mortgage rates. Nevertheless, Redfin indicated that typical households are still earning significantly less than required to afford a home. Consumer confidence in the U.S.
saw its most substantial drop in roughly three years, paralleled by a slight uptick in the annual inflation outlook, as reported by the Conference Board. Additionally, manufacturing activity in the U.S. Mid-Atlantic region experienced an unexpected decline, plunging deeper into contraction territory this month due to worsened shipment and employment conditions, according to the Richmond Fed. The two-year U.S.
yield fell four basis points to 3.54%, while the ten-year rate decreased by one basis point to 3.73%. On Wednesday, the Federal Reserve made the decision to cut interest rates by 50 basis points. Fed Governor Michelle Bowman reiterated her preference for a smaller, 25-basis-point cut due to concerns around inflation.
"I preferred a smaller initial cut in the policy rate while the U.S. economy remains strong and inflation remains a concern, despite recent progress," she remarked at a Kentucky Bankers Association event on Tuesday. Following the Fed's moves, Atlanta Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari acknowledged the appropriateness of the Federal Open Market Committee's recent decisions, although future policy changes will hinge on incoming economic data. In commodity markets, West Texas Intermediate crude oil rose by 1.6% to $71.46 per barrel on Tuesday.
According to ING, "Oil's positive momentum continues as tensions in the Middle East remain elevated alongside fresh hurricane threats for the U.S. and Mexico." In the realm of equities, shares of Chinese e-commerce platform PDD surged by 11% in U.S. markets, becoming the top performer on the Nasdaq.
Chip-making giant Nvidia followed closely, ranking as the second-best performer on the Nasdaq and among the top gainers on the S&P 500 with a 4% increase. On a contrasting note, Visa shares experienced a 5.5% decline, marking the worst performance of the Dow and the second-steepest drop on the S&P 500.
This decline followed the filing of a civil antitrust lawsuit by the U.S. Department of Justice, alleging the company's monopolistic practices in the debit card market. In precious metals, gold prices climbed by 1.3% to $2,688.10 per troy ounce, while silver surged by 4.7% to $32.55 per ounce..