In a volatile trading session, US equity indexes showcased a slight uptick as investors absorbed the sharpest decline in consumer confidence observed in over three years, coupled with Federal Reserve Governor Michelle Bowman's renewed advocacy for a measured approach to easing monetary policy. As the day progressed on Tuesday, the S&P 500 index experienced a modest increase of 0.2%, reaching 5,731.1.
The Dow Jones Industrial Average saw a marginal advance, climbing less than 0.1% to 42,186.6, following a new record high achieved in the prior trading session. Meanwhile, the Nasdaq Composite improved by 0.6%, hitting 18,088.2. The materials sector emerged as the notable gainer, while financial stocks faced declines during intraday trading. On the economic front, the Conference Board reported a decline in consumer confidence, with its index dropping to 98.7 in September from 105.6 in August.
This figure also fell short of the 104 anticipated based on a Bloomberg survey. "September's decline marked the most significant drop since August 2021, with all five components of the index showing deterioration," commented Dana Peterson, chief economist at the Conference Board. Further scrutinizing economic activity, the Richmond Fed's monthly manufacturing index revealed a slip to minus 21 in September, down from minus 19 in August, defying expectations for an improvement to minus 12, according to a Bloomberg survey. During a discussion on monetary policy, US Federal Reserve Governor Michelle Bowman expressed that restrictions on policy should be eased cautiously, noting that while inflation continues to be a concern, the labor market may not be as weak as perceived by the data.
Notably, Bowman was the lone dissenting voice in the Federal Open Market Committee's decision to cut the federal funds rate target range by 50 basis points, adjusting it to a new band of 4.75% to 5% during their recent meeting. In terms of bonds, US Treasury yields were mixed, with the 10-year yield increasing by 1.3 basis points to 3.75%, whereas the two-year yield decreased by 1.7 basis points, settling at 3.56%. On the corporate side, Marriott International has teamed up with Sands China, a subsidiary of Las Vegas Sands, to introduce the Luxury Collection brand in Macao.
Following this announcement, shares of Las Vegas Sands surged by 6.2% during intraday trading, positioning it as the second-largest gainer on the S&P 500. In a separate development, Visa is reportedly facing a lawsuit from the US Justice Department on allegations of monopolizing the debit card market within the United States.
This news, as reported by Bloomberg based on informed sources, contributed to a 3.8% drop in Visa’s shares during intraday trading, making it the poorest performer on the Dow. Meanwhile, West Texas Intermediate crude oil futures see a notable rise, appreciating 1.6% to trade at $71.52 a barrel..