On Tuesday, stock markets experienced fluctuations throughout the trading session but concluded the day predominantly higher. The Nasdaq and the S&P 500 extended their significant gains from Monday’s session, while the Dow Jones Industrial Average diverged from this trend.The Nasdaq’s ascent continued as it gained 141.28 points, or 0.8%, reaching 17,025.88. Similarly, the S&P 500 rose by 24.47 points, or 0.5%, closing at 5,495.52. Conversely, the Dow declined by 92.63 points, or 0.2%, finishing at 40,736.96.The day’s volatility stemmed from anticipation of key upcoming inflation data releases. The U.S. Labor Department is set to publish reports on consumer price inflation on Wednesday and producer price inflation on Thursday for the month of August. The projections indicate a deceleration in the growth rates of both consumer and producer prices compared to the same period last year.These impending data releases could influence interest rate forecasts ahead of the Federal Reserve’s monetary policy meeting next week. Although it is widely expected that the Federal Reserve will lower interest rates next week, there is some uncertainty regarding the extent of the rate cut. According to CME Group’s FedWatch Tool, there is a 69% probability of a 25 basis point reduction and a 31% chance of a 50 basis point cut.**Sector News**The software sector performed particularly well, with the Dow Jones U.S. Software Index surging by 1.9%. Oracle (ORCL) was a standout performer, climbing 11.4% following better-than-anticipated fiscal first-quarter results and the announcement of a strategic partnership with Amazon Web Services.Networking stocks also exhibited notable strength, which was reflected in the 1.9% increase in the NYSE Arca Networking Index. Additionally, gold, commercial real estate, and semiconductor stocks saw significant gains. Conversely, a sharp decline in crude oil prices adversely affected energy stocks. Banking stocks struggled as well, leading to a 1.8% drop in the KBW Bank Index.**Other Markets**In Asian markets, the performance was mixed during Tuesday’s trading session. Japan’s Nikkei 225 Index fell by 0.2%, while China’s Shanghai Composite Index advanced by 0.3%.European markets, however, faced declines. The German DAX Index plunged by 1.0%, the U.K.’s FTSE 100 Index decreased by 0.8%, and the French CAC 40 Index edged down by 0.2%.In the bond market, U.S. treasuries continued their upward momentum from recent sessions, leading to a 5.1 basis point drop in the yield on the benchmark ten-year note, bringing it to 3.646%.**Looking Ahead**Wednesday’s trading activity is likely to be heavily influenced by the consumer price inflation report and its potential impact on interest rate expectations.The material has been provided by InstaForex Company – www.instaforex.com
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