4:15pm: Record-breaking session
Stocks finished the session slightly higher in cautious trade ahead of chipmaker Nvidia’s highly anticipated quarterly earnings report on Wednesday.
The Dow Jones notched its second record close in a row, up 10 points at 41,250 points.
The Nasdaq added 0.2% at 17,754 points while the S&P 500 added 0.2% at 5,625 points.
2:55pm: Consumer confidence improves
Consumer confidence improved in August, but consumers are feeling the cold shoulder in the job market, noted Jeffrey Roach, Chief Economist for LPL Financial.
"We see weakening perception about the job market, likely putting a crimp on consumer spending in the coming months. Investors recently heard from companies that consumers are becoming more selective, looking for deals and discounts," Roach said.
"Offsetting this potential weakness is the Fed pivot, which could positively impact risk appetite. We expect the Fed to be especially watchful over labor market conditions and could cut aggressively should conditions warrant."
1:50pm: Nasdaq gains ground
The Nasdaq started to power ahead on Tuesday afternoon.
The tech-heavy index had added almost 0.4% as of midafternoon. That optimism extended to the S&P 500, which had gained 0.2%. The Dow hovered near the flatline.
Supply constraints represent a risk for Nvidia going into its earnings report due on Wednesday amid high expectations for the chipmaker.
Analysts at Baird highlighted that Nvidia products, particularly its GB200 chip, are in high demand from hyperscalers like Meta, Azure and AWS but the company’s ability to ship these products is limited by its production capacity.
Expected to be a major revenue driver, the GB200 has been delayed due to a redesign, pushing its launch back to January 2025.
“Supply could potentially restrain 3Q revenue outlook, representing a risk into earnings, in our view, given strong expectations into earnings,” analysts wrote.
“Demand remains very strong and we operate under the assumption that an estimated $2 billion to $3 billion in revenue shortfall later this year due to the GB200 push out will be offset by B200A and H100 demand.”
12:05pm: Semiconductors dip
Stocks experienced choppy trading on Tuesday as investors remained cautious ahead of Nvidia's potentially impactful earnings report.
The Dow Jones Industrial Average dipped by 0.2%, while the S&P 500 and Nasdaq Composite hovered around the flatline.
Semiconductor stocks, including Nvidia, lost ground as the market weighed the impact of the chipmaker's upcoming results on the broader tech sector.
Meanwhile, investors are also awaiting a key inflation report that could influence expectations for a potential interest rate cut by the Federal Reserve next month.
''The rally in stock indices is slowing down ahead of Nvidia results on Wednesday,” commented Axel Rudolph, Senior Technical Analyst at online trading platform IG.
"Most US equity indices continue to gingerly advance ahead of Nvidia's second quarter earnings on Wednesday. With the chipmaker's stock contributing around 5% to the S&P 500's 18.6% year-to-date gains, its results will be closely watched by investors and will likely have a significant impact on not just the S&P 500 but also other global stock indices."
9.50am: Wall Street slides early on
US stocks started on the back foot on Tuesday, with the Dow Jones opening lower after closing out Monday at a record high.
Having closed at an all-time high of 41,240, the Dow Jones retreated from gains on Tuesday’s open, falling 67 points.
The Nasdaq and S&P 500 fell too, by 82 and 18 points respectively as investors awaited the week’s key event in NVIDIA results on Wednesday.
Following a string of earnings beats, expectations are for the chip-making giant to impress with results once again on Wednesday.
However, interactive investor Richard Hunter warned such “stellar expectations” leave “much scope for disappointment”.
“While AI enthusiasm remains a major factor in propelling the relevant indices, the dual concerns of heady valuations and stretching estimates take on more significance as these markets continue to rise.”
Elsewhere on Tuesday, S&P Case-Shiller index data showed house prices in the 20 major US metropolitan markets climbed 6.5% over the 12 months to June, subsiding against last month but growing faster than market expectations.
7.23am: Stocks seen lower
Wall Street looked set for a poor start on Tuesday morning as NVIDIA’s latest update on Wednesday remained front and centre of investors’ minds.
This follows a negative session for both the Nasdaq and S&P 500 on Monday, with futures showing each 0.1% lower ahead of Tuesday’s bell.
The Dow Jones was expected to sit just off the mark on Tuesday’s open too.
“Given their disproportionate weighting and current market darling NVIDIA in particular, this week is set to be a testing time for tech stocks,” interactive investor analyst Richard Hunter commented.
US house price and consumer confidence data is also due on Tuesday, after optimism has grown around base rate cuts soon, fuelled by comments from Fed chair Jerome Powell last week.