Paramount Global slides after Bronfman withdraws offer
Super Micro falls as Hindenburg reveals short position
S&P 500 +0.16%, Nasdaq +0.16%, Dow +0.02%
Aug 27 (Reuters) – The S&P 500 closed higher on Tuesday and the Dow Jones hit a record close ahead of Nvidia’s highly anticipated quarterly report on Wednesday and economic data expected later in the week that could provide clues to the path of interest rate cuts.
Heavyweight technology stocks posted mixed results, with the focus on upcoming results from Nvidia (NVDA.O).opens new tabthe chipmaker at the center of the rally in AI-related stocks on Wall Street.
According to LSEG data, Nvidia shares rose 1.5 percent, making the company the most traded company on U.S. stock exchanges.
With a gain of 159% in 2024, Nvidia is considered the biggest winner in AI technology yet. Its results follow recent concerns about an increase in already high spending by Microsoft (MSFT.O).opens new tabAlphabet (GOOGL.O)opens new tab and other key players in their race for dominance in emerging AI technology.
“The hurdle is really very high, not only in terms of Nvidia’s earnings and forecasts, but also in terms of the story about the state of artificial intelligence that is pulling the technology sector out of its recent crisis,” said Ross Mayfield, investment strategy analyst at Baird.
Apple (AAPL.O)opens new tab Shares closed 0.4% higher, while Amazon (AMZN.O)opens new tab fell by 1.4%.
The S&P 500 rose 0.16% and ended the session at 5,625.80 points.
The Nasdaq rose 0.16 percent to 17,754.82 points, while the Dow Jones Industrial Average rose 0.02 percent to 41,250.50 points, closing at a record high for the second day in a row.
Of the 11 S&P 500 sector indices, six rose, led by the information technology sector (.SPLRCT).opens new taban increase of 0.63%, followed by an increase of 0.48% in financial stocks (.SPSY)opens new tab.
Data on Tuesday showed that U.S. consumer confidence rose to a six-month high in August. At the same time, consumers are also more concerned about the state of the labor market after the unemployment rate rose to a nearly three-year high of 4.3 percent last month.
A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 7, 2024. REUTERS/Brendan McDermid/File Photo Purchase Licensing rightopens new tab
Investors will be watching July personal consumption spending data due on Friday for further clues on the possible pace of interest rate cuts.
According to CME Group’s Fed Watch tool, traders are now betting on a 25 or 50 basis point rate cut in September.
Meanwhile, UBS Global Wealth Management increased the probability of a recession in the US from 20 to 25 percent, citing the weakness of the labor market.
Paramount Global (PARA.O)opens new tab slipped more than 7% after Edgar Bronfman Jr. withdrew his offer for the company, clearing the way for Skydance Media to take control of Shari Redstone’s media empire.
Tesla (TSLA.O)opens new tab fell 1.9% after Canada announced it would impose a 100% tariff on imports of Chinese electric vehicles. The tariffs apply to all electric vehicles shipped from China, including those made by Tesla.
Super Micro Computer (SMCI.O)opens new tab fell 2.6% after short seller Hindenburg Research said it held a short position in the AI server maker.
The PHLX Housing Index (.HGX)opens new tab lost 1.2% after data showed single-family home prices fell in June as higher mortgage rates depressed demand.
In the S&P 500 (.AD.SPX), falling stocks outweighed rising onesopens new tab in a ratio of 1.1:1.
The S&P 500 recorded 50 new highs and 1 new low; the Nasdaq recorded 62 new highs and 57 new lows.
Volume on U.S. exchanges was relatively low, with 8.6 billion shares traded, compared to an average of 11.9 billion shares over the previous 20 sessions.
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Reporting by Noel Randewich in Oakland, California; additional reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; editing by Shounak Dasgupta and Matthew Lewis
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