The S&P 500 edged higher on Tuesday as Treasury yields declined for a second consecutive session, while a strong rally in semiconductor stocks helped push the Nasdaq Composite higher.
The S&P 500 gained 0.32% to close at 7,677.28, while the Nasdaq Composite advanced 0.66% to finish at 26,151.30. The Dow Jones Industrial Average rose 160.24 points, or 0.3%, to 53,577.40, extending its winning streak to three consecutive sessions.
Treasury yields continued to retreat, with the benchmark 10-year yield falling by more than 7 basis points to 4.625%. The decline followed reports that the Treasury Department could potentially use its $1 trillion General Account to support bond repurchases. Meanwhile, West Texas Intermediate crude futures dropped more than 3%, adding further support to market sentiment.
Semiconductor stocks were among the strongest performers ahead of Nvidia’s highly anticipated earnings report, scheduled for release after Wednesday’s market close. Nvidia shares rose 2%, ending a seven-session losing streak, while AMD gained 4.9% and Micron Technology climbed 2.5%.
Consumer stocks, however, came under significant pressure. Dick’s Sporting Goods plunged 30% after reporting disappointing results, marking its worst trading day on record. Walmart declined around 1%, while Target fell nearly 4%.
Investor sentiment was also weighed down by weaker-than-expected consumer confidence and escalating trade tensions between the United States and Canada. The Conference Board’s Consumer Confidence Index fell to 89.4 in August, below market expectations of 90.2, reflecting growing concerns about the economic outlook.
Trade tensions intensified after Canada announced retaliatory tariffs against the United States, pledging to match the 50% tariffs imposed by President Donald Trump “dollar for dollar.”
Looking ahead, investors are closely watching the upcoming July PCE inflation data, which could influence expectations for future Federal Reserve policy.
Markets will also focus on Federal Reserve Chairman Kevin Warsh’s speech at the Jackson Hole symposium on Friday. His comments could become a key market-moving event, particularly as investors continue to assess Treasury Department efforts to reduce pressure from elevated long-term bond yields.
