By Noel Randwick
(Reuters) – Technology stocks rose on Tuesday in mixed trading ahead of a highly anticipated quarterly report from Nvidia Corp on Wednesday and economic data expected later in the week.
The benchmark S&P 500 and Nasdaq swung between gains and losses, with focus on results due Wednesday from Nvidia, the chipmaker at the heart of Wall Street’s rally in artificial intelligence-related stocks.
Nvidia shares rose 2% in recent trading, and were the most actively traded company on U.S. exchanges, according to data from the London Stock Exchange.
Nvidia, the biggest winner so far from AI, is expected to see its sales soar 161% in 2024, its results coming on the heels of recent concerns about already massive spending increases by Microsoft (NASDAQ: ), Alphabet (NASDAQ: ) and other heavyweights in their race to dominate emerging AI technology.
“There is a very high bar to cross not only in terms of Nvidia’s earnings and guidance, but also in terms of the story they are telling about the state of AI lifting the tech sector out of its recent doldrums,” said Ross Mayfield, investment strategist at Bird.
The dollar index fell after closing at a record high on Monday for the first time in more than a month, amid optimism about lower borrowing costs starting next month after US Federal Reserve Chairman Jerome Powell’s endorsement last week.
The Standard & Poor’s 500 index rose 0.25% to 5,630.64 points.
The Nasdaq rose 0.34% to 17,786.32 points, while the Dow Jones Industrial Average fell 0.02% to 41,233.93 points.
Of the 11 S&P 500 sector indices, six advanced, led by information technology, which rose 0.81%, followed by financial services, which rose 0.47%.
U.S. consumer confidence rose to a six-month high in August, data showed on Tuesday, while consumers also became more concerned about the labor market after the unemployment rate jumped to a near three-year high of 4.3% last month.
Investors are awaiting July personal consumption spending data, due on Friday, for further hints on the path of rate cuts.
Traders are now betting on a 25- or 50-basis-point rate cut in September, according to CME Group’s (NASDAQ:) Fed Watch tool.
Meanwhile, UBS Global Wealth Management raised the odds of a U.S. recession to 25% from 20%, citing a weak labor market.
Shares of Paramount Global fell about 6% after Edgar Bronfman Jr. dropped his bid to buy the company, paving the way for Skydance Media to take control of Shari Redstone’s media empire.
Tesla Inc. (NASDAQ:TSLA) shares fell 1.5% after Canada announced it would impose a 100% tariff on Chinese electric vehicle imports. The tariffs apply to all electric vehicles shipped from China, including those made by Tesla.
Super Micro Computer Inc. (NASDAQ:SMIC) shares fell 2.6% after short seller Hindenburg Research said he has a short position in the artificial intelligence server maker.
The PHLX housing index fell 1.1% after data showed single-family home prices fell in June as higher mortgage rates weighed on demand.
The S&P 500 recorded 43 new highs and 43 new lows, and the Nasdaq recorded 46 new highs and 49 new lows.
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