4.10pm: Tech surge propels Nasdaq
The Nasdaq crossed the 18,000 level for first time ever on Tuesday while the S&P 500 breached 5,500 points in a sharp turnaround for stocks to close the trading day.
Stocks surged as Federal Reserve chair Jerome Powell highlighted positive economic trends, particularly noting a "disinflationary path" in recent data.
The S&P 500 closed above 5,500 for the first time, gaining over 0.6%, while the Nasdaq Composite hit a record high, rising more than 0.8% to close at 18,028. The Dow Jones Industrial Average also saw gains of about 0.4%.
Meanwhile, investor sentiment improved after new job openings data indicated a resilient labor market, despite recent softer economic indicators.
The market's momentum was primarily fueled by strong performance in large-cap technology stocks. Tesla's impressive 10% surge following better-than-expected second quarter deliveries played a significant role in pushing the indexes to record highs. Additionally, Amazon, Apple, and Alphabet all saw gains of over 1%, further bolstering the market's upward trajectory.
12:12pm: Powell’s comments lift sentiment
US stocks were little changed to modestly higher at midday, rebounding from their earlier lows on comments from Fed chair Jerome Powell which reignited hopes of a September interest rate cut.
Speaking at a European Central Bank conference, Powell acknowledged the progress in disinflation in the United States but also reiterated that the central bank still needs more evidence of inflation falling before it will begin to cut rates.
He said the last two inflation readings in April and May did “suggest that we are getting back on a disinflationary path.”
Pepperstone senior research strategist Michael Brown highlighted that Powell’s comments were “a touch more dovish than those made of late.”
“Commentary of this ilk appears to further open the door to a September rate cut, especially with Powell also flagging the risk associated with leaving it too late to deliver the first rate reduction,” Brown said.
Stocks were flat to modestly higher following Powell’s comments, with the Dow Jones flat at 39,164 points, the S&P 500 up 0.1% at 5,483 points, and the Nasdaq up 0.3% at 17,927 points.
9.33am: US stocks open lower
Wall Street has opened lower today, wiping out most of the gains made during yesterday's session.
The Dow Jones opened 0.2% lower at 39,100, while the Nasdaq dropped by 0.4% to 17,820.
The S&P 500 started the day 0.2% down at 5,461.
Companies that made moves at the opening bell included Tesla, which rose close to 6% after it posted better-than-expected delivery numbers in its second quarter.
Deliveries at the EV maker reached 440,000 during the period, beating Wall Street's guidance of 436,000.
Paramount saw its shares rise close to 3.5% after reports revealed it was in talks with other companies regarding merging its streaming service with another platform.
Warner Bros. Discovery is believed to be one of the companies interested in combining its streaming with the Yellowstone and Star Trek: New Worlds creator.
8.34am: Wall Street to open lower
US stocks are on track to open lower this morning as the effects of higher government bond yields start to feed through to the markets.
The Dow Jones is on track to open 135 points lower, while the Nasdaq is predicted to drop by 105 points, according to premarket futures.
The S&P 500 is forecast to start the day of trading 25 points lower at 5,511.
Bond yields in the US lifted higher overnight after the Supreme Court issued a ruling that lifted the prospect of another Trump presidency.
Yesterday, it was ruled that Trump could not be prosecuted for official actions he made when in office, offering him immunity over his actions in regards to the January 6 riots.
10-year bond yields lifted close to 14 basis points to 4.48% on Monday as economists prepared for the prospect of increased borrowing and further tariffs should the Republican candidate take office later this year. Overnight, yields held at 4.45%.