A surge in major tech stocks, led by Nvidia’s 7% rebound following a $430 billion selloff, boosted equities on Tuesday. Nvidia’s rise lifted the “Magnificent Seven” tech megacaps, extending the market’s June advance. The S&P 500 climbed 0.4%, while the Nasdaq 100 increased 1.2%. Meanwhile, Treasuries remained stable after a $69 billion two-year US sale.
US consumer confidence dipped, and Federal Reserve officials indicated potential future rate cuts. Analysts at Independent Advisor Alliance foresee continued market volatility but maintain a bullish outlook barring major economic shifts.
Nvidia’s correction, despite recent selloffs, is not seen as a negative indicator for the tech sector or the broader market, according to UBS. Notably, Nvidia’s data center market remains a key revenue driver.
Other notable moves included Carnival Corp’s 8% surge on a bullish outlook and Bitcoin topping $61,000. Investors continue to focus on potential Fed rate cuts in early 2025, with strategists expecting the S&P 500 to remain in “buy-the-dip” mode.
Key corporate developments saw Paramount Global exploring partnerships for its streaming business, Exxon Mobil planning further expansion in Guyana, and Boeing proposing an acquisition of Spirit AeroSystems.
Market indicators showed little change in bonds and mixed movements in commodities, with oil prices slightly declining and gold falling 0.7%.
