The S&P 500 climbed for the second straight session on Tuesday, as investors sought stability amid a turbulent September. The broad market index rose by 0.45%, closing at 5,495.52. The Nasdaq Composite also posted a gain, up 0.84% to end at 17,025.88. In contrast, the Dow Jones Industrial Average fell by 92.63 points, or 0.23%, settling at 40,736.96.
Technology stocks provided a boost, with Nvidia closing up 1.5%, contributing to gains in both the S&P 500 and Nasdaq. AMD and Microsoft also saw gains. However, the broader tech sector has faced challenges recently, with the Technology Select Sector SPDR Fund (XLK) down approximately 7% this quarter. This decline reflects growing investor concerns about the economy, leading to a sell-off in previously high-flying tech stocks.
Banking stocks exerted downward pressure on the market. JPMorgan Chase, the biggest decliner in the Dow, dropped more than 5% following cautious remarks about net interest income at an industry conference. This sentiment weighed heavily on the broader market.
Phillip Colmar, global strategist at MRB Partners, commented, “Today’s market movement reflects an overdone defensive rotation. We are seeing significant volatility as investors return from summer, with markets previously positioned for high-tech growth and the Fed’s potential rate cuts.”
Attention now turns to key economic reports expected to influence market direction. The consumer price index (CPI) report for August will be released on Wednesday, followed by the producer price index (PPI) on Thursday. Investors are hopeful that a widely anticipated interest rate cut by the Federal Reserve at its September 17-18 meeting could alleviate concerns about economic weakening.
In earnings news, Oracle surged more than 11% after exceeding fiscal first-quarter expectations and announcing a new partnership with Amazon Web Services to offer database services.
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