FX.co ★ U.S. Stocks Close On Firm Note; Nasdaq Rises 1.5 Percent

U.S. stocks observed an upward trajectory on Tuesday, primarily driven by a robust performance in the technology sector. Setting aside concerns about geopolitical tensions and interest-rate uncertainties, investors directed their attention towards the earnings season.

All major stock indices closed the day on a positive note. The Dow Jones Industrial Average began the session on a subdued note before gaining momentum midway, ultimately closing with an increase of 126.13 points or 0.3 percent, reaching 42,080.37. The S&P 500 advanced by 55.19 points or 0.97 percent to settle at 5,751.13. Meanwhile, the Nasdaq saw a rise of 259.01 points or 1.45 percent, ending at 18,182.92.

Notable contributors to the day’s gains included Travelers Companies Inc., Honeywell, Apple, Home Depot, Amazon, Microsoft, and Salesforce, which advanced between 1 to 2 percent.

In the Nasdaq, Palo Alto Networks emerged as the top gainer, surging by nearly 5 percent. NVIDIA increased by about 3.7 percent, and Synopsys appreciated by 3.2 percent. Other noteworthy performers included CoStar Group, Netflix, Broadcom, Autodesk, Cadence, Airbnb, Booking Holdings, and Adobe, each advancing between 2 to 3 percent.

PepsiCo rose approximately 2 percent after announcing quarterly earnings of $2.930 billion, or $2.13 per share, compared to $3.092 billion, or $2.24 per share, in the same period last year, surpassing Wall Street expectations.

Conversely, ExxonMobil, Valero Energy, Marathon Petroleum Corporation, Super Micro Computer, Caterpillar, Chevron, and American Express were among the notable decliners for the day.

Economically, the U.S. trade deficit contracted to $70.4 billion in August 2024, marking the lowest level in five months from an upwardly revised $78.9 billion in July. Exports rose by 2% to a record high of $271.8 billion, whereas imports fell by 0.9% to $342.2 billion.

Anticipation surrounds upcoming U.S. consumer and producer price inflation data set for release later this week.

Internationally, Asian stock markets fell on Tuesday, with Hong Kong leading the region’s decline as China’s National Development and Reform Commission committed to further measures to stimulate the economy, though specifics were scant.

Meanwhile, the U.S. dollar steadied near a seven-week high, and gold saw a slight decrease following a Federal Reserve official’s suggestion for a cautious approach to interest-rate reductions.

Market participants are eagerly awaiting critical U.S. inflation data and the Federal Reserve's latest meeting minutes, expected to provide further insights into the Fed's monetary policy direction.

In Europe, major stock markets drifted downward due to ongoing Middle East tensions and an absence of significant new stimulus measures from China’s state planner.