As the trading day progressed on Tuesday, U.S. benchmark equity indexes demonstrated a mixed performance amid anticipation of the official inflation data for September, which is expected to be released later in the week. Specifically, the Nasdaq Composite saw a 1% increase, reaching 18,103.9 intraday, while the S&P 500 rose by 0.7% to 5,732.9.
Conversely, the Dow Jones Industrial Average showed little change, standing at 41,964.2. In terms of sector performance, technology led the gainers, contrasting with the energy and materials sectors, which unfortunately positioned themselves in the red zone. Looking ahead, the official inflation data expected this Thursday is projected to reflect a 0.1% sequential increase in U.S.
consumer inflation, equating to an annual growth rate of 2.3% for the previous month, as indicated by a consensus compiled by Bloomberg. Deutsche Bank elaborated on the situation, noting, "Our expectations are for declines in energy prices to keep the sequential gains in the headline consumer price index (CPI) more muted than those for core inflation." They added that if their projections hold, it would lead to a decrease in the year-over-year growth rate of headline CPI by 30 basis points to 2.3%, while the core inflation would slightly tick down to 3.2%. Additionally, the U.S.
producer prices report set for release on Friday will further inform investors and analysts about price trends within the economy. In terms of U.S. Treasury yields, the 10-year yield experienced a nominal increase of one basis point, reaching 4.03% intraday Tuesday, while the two-year rate fell by 3.7 basis points, landing at 3.97%. In economic highlights, the small business optimism index in the U.S.
showed improvement; however, it fell short of expectations, revealing the ongoing challenges posed by inflation for business proprietors. The latest survey conducted by the National Federation of Independent Business (NFIB) revealed concerns persisting among business leaders. NFIB Chief Economist Bill Dunkelberg articulated, "Uncertainty makes owners hesitant to invest in capital spending and inventory, especially as inflation and financing costs continue to put pressure on their bottom lines." Additionally, government data indicated that the U.S.
trade deficit narrowed in August, primarily attributed to an uptick in exports alongside a decrease in imports. Oxford Economics remarked, "The resolution of the dockworkers strike earlier this month ensures that supply chain disruptions would be minimal and removes a key risk to the trade outlook." On the commodities front, West Texas Intermediate crude oil prices dipped 3.9%, falling to $74.12 a barrel intraday.
D.A. Davidson noted, "A rally in oil prices paused as traders awaited a response from Israel to last week's Iranian rocket attacks." Shifting focus to corporate news, shares of Palo Alto Networks ($PANW) surged by 4.9%, establishing itself as the top performer on the Nasdaq, and ranking second on the S&P 500, following Goldman Sachs' decision to raise its price target on the stock from $376 to $425 while maintaining a buy rating. In contrast, PepsiCo ($PEP) tempered its 2023 full-year organic revenue growth outlook despite its third-quarter earnings outperforming Wall Street estimates, albeit with sales falling short of market expectations.
Consequently, the company's shares rose by 1.4%. Furthermore, Super Micro Computer ($SMCI) faced the steepest decline on the Nasdaq, plummeting by 6.9%, marking a challenging day for the company. In precious metals, gold prices fell 1.2%, resting at $2,634.70 per troy ounce, while silver faced a decline of 4.3%, trading at $30.62 per ounce..