US Stocks Rebound Ahead of Nvidia Earnings
US stock markets showed signs of recovery on Tuesday after a recent pullback in technology shares. The rebound came ahead of key earnings from Nvidia and inflation data that could shape future Federal Reserve policy decisions.
The Dow Jones Industrial Average rose by 22.16 points, or 0.04%, to 53,439.32, while the S&P 500 gained 11.36 points, or 0.15%, to 7,664.22. The Nasdaq Composite also gained ground, rising by 121.83 points, or 0.47%, to 26,102.02.
The early strength offered relief to investors following a bond market selloff that lifted Treasury yields and weighed on equities. As Wall Street prepares to enter September, traditionally a volatile month for equity performance, investors are looking ahead to Nvidia's earnings report on Wednesday.
Geoff Strotman, head of Segal Marco Advisors' Alpha Investment Research Group, noted the market's volatility but emphasized that AI-driven growth is still in its early stages. However, concerns over stretched valuations and the longevity of the AI-driven market rally may be revived if signs of slowing growth appear in Nvidia's results.
Most large stocks were trading higher, with Nvidia and Meta gaining 1.4% and 0.9%, respectively. Chipmakers Intel and Micron added 3.1% and 3.9%, while Data-storage company Western Digital rose 3.7%. Advanced Micro Devices also gained 3.4% after Raymond James upgraded the stock.