In the midday trading session on Tuesday, U.S. equity indexes experienced a slight decline, marking a momentary pause following the robust gains seen over the past week. The S&P 500 index fell by 0.3%, closing at 5,594.3. Concurrently, the Nasdaq Composite registered a decrease of 0.4%, settling at 17,803.2, while the Dow Jones Industrial Average also slipped 0.2% to reach a value of 40,812.5.
Notably, last week turned out to be the most successful week for the S&P 500 this year, offering a promising outlook as the other two indexes edged closer to their previous all-time highs. Among the sectors, Energy recorded the most pronounced drop, plummeting 2.3%. In contrast, the Healthcare and Consumer Staples sectors managed to yield positive performance results. The CBOE Volatility Index (VIX), an important gauge of market fear, experienced a notable rebound, climbing 4.9% to an index value of 15.36.
This move came after a dramatic decline the previous week, where the VIX had reached a staggering intraday high of 65.7. Historically, this level has only been exceeded twice in the last 35 years — during the financial crisis and the COVID-19 pandemic, according to insights from the Wells Fargo Investment Institute. In the bond market, Treasury yields fell across the board.
The yield on the 10-year Treasury bond decreased by 4.1 basis points, landing at 3.83%. Simultaneously, the two-year yield receded by 6.1 basis points to settle at 4.01%. On the FOMC front, Atlanta Fed President Raphael Bostic and the Federal Reserve's Vice Chair for Supervision, Michael Barr, took to the speaking circuit on Tuesday, providing insights into monetary policy and economic outlook. Turning to corporate news, Palo Alto Networks (ticker: $PANW) stunned investors by reporting a surprising increase in its fiscal Q4 earnings late Monday.
The cybersecurity firm recorded revenue that surpassed analyst expectations, which triggered an impressive jump of 8.5% intraday, making it the leading performer on both the S&P 500 and the Nasdaq indices. In contrast, Estee Lauder (ticker: $EL.US) released mixed results for its fiscal Q4, with profits exceeding forecasts.
Nevertheless, the company’s guidance for fiscal year 2025 fell short of consensus estimates, due in part to conservative growth projections, especially in the crucial Chinese market. This disappointing outlook led to a significant decline in Estee Lauder shares, which tumbled by 5.3% intraday, marking it as the worst performer on the S&P 500 for the day. Additionally, the price of West Texas Intermediate (WTI) crude oil experienced a minor drop, falling 0.3% to $74.16 per barrel..