On Tuesday, stocks exhibited a lack of clear direction, with major indices fluctuating around the unchanged line. Despite the volatile trading, the Dow managed to inch up to a new record closing high.All the major indices ended the day with modest gains. The Dow nudged up by 9.98 points or less than a tenth of a percent to close at 41,250.50. The Nasdaq climbed 29.05 points or 0.2 percent, finishing at 17,754.82, and the S&P 500 advanced 8.96 points or 0.2 percent to settle at 5,625.80.The choppy trading session reflected traders’ hesitation to make significant moves ahead of Nvidia’s (NVDA) fiscal second-quarter earnings report, slated for release after Wednesday’s market close. Nvidia shares bounced back by 1.5 percent on Tuesday, recovering from a 2.3 percent decline on Monday.Traders are also keenly awaiting the Commerce Department’s personal income and spending report for July, which includes inflation data closely watched by the Federal Reserve, set for release on Friday.Economists predict the report will indicate that the annual consumer price growth rate remained steady at 2.5 percent, while the core consumer price rate is expected to increase slightly to 2.7 percent from June’s 2.6 percent.Although the data may not alter the prevailing optimism that the Fed will lower rates next month, it could influence expectations regarding the speed of future rate cuts.In his recent speech at the Jackson Hole Economic Symposium, Fed Chair Jerome Powell indicated that it is “time for policy to adjust,” but emphasized that the “timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”On the U.S. economic front, the Conference Board released a report showing an unexpected improvement in U.S. consumer confidence for August. The consumer confidence index rose to 103.3 in August, up from a revised 101.9 in July. The increase surprised economists who had forecast a decline to 100.1 from the initially reported 100.3 for the previous month.Sector NewsReflecting the broader markets’ lackluster performance, most major sectors posted only modest movements. Telecom stocks experienced a substantial decline, with the NYSE Arca North American Telecom Index falling by 2.5 percent. Housing stocks also showed significant weakness, demonstrated by the 1.2 percent loss in the Philadelphia Housing Sector Index. Additionally, energy stocks fell sharply, influenced by a significant drop in crude oil prices, while semiconductor stocks regained some ground after their steep decline on Monday.Other MarketsInternationally, stock markets across the Asia-Pacific region showed mixed results on Tuesday. Japan’s Nikkei 225 Index rose by 0.5 percent, whereas China’s Shanghai Composite Index dipped by 0.2 percent. Major European markets also presented a mixed picture following early strength. France’s CAC 40 Index fell by 0.2 percent, while the U.K.’s FTSE 100 Index and Germany’s DAX Index rose by 0.2 percent and 0.4 percent, respectively.In the bond market, U.S. Treasuries saw another modest decline after a slight drop in the previous session. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, increased by 1.5 basis points to 3.833 percent.Looking AheadThe absence of significant U.S. economic news may lead to another day of choppy trading on Wednesday, as traders await Nvidia’s earnings report after the market close.The material has been provided by InstaForex Company – www.instaforex.com
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