4:10pm: Investors anticipate high-stakes debate
The Nasdaq and S&P 500 finished on the front foot as investors geared up for a pivotal showdown between presidential hopefuls Kamala Harris and Donald Trump on the debate stage tonight.
The Nasdaq closed at 17,026 points for a 0.8% gain and the S&P 500 finished at 5,496 for a 0.5% gain on the day. The Dow Jones didn't fare quite as well, losing 0.2% at 40,737.
Recent polls indicate a tight race between Donald Trump and Kamala Harris. Harris leads in Michigan and Wisconsin, while Trump is ahead in Arizona. Georgia, Nevada, and Pennsylvania remain too close to call. National polling averages show Harris leading by about 2 points, but a recent NYTimes/Sienna poll puts Trump ahead by 1 point.
“Historically political debates have not been consequential for markets or, with notable exceptions, for the race,” Citi analysts wrote Tuesday, noting July’s debate was an exception catalyzing President Biden’s withdrawal from the race.
“Depending on the debate outcome, some election trades may come back into focus. The Fed is still front-and-center for steepeners and USD trades. Alternative energy and tariff-impacted textiles/apparel may be sufficiently divorced from monetary policy for the market to re-position for elections even with continuing Fed uncertainty.”
The debate is expected to offer critical insights into the candidates' policies and how they might impact various sectors and investment strategies.
2:45pm: Tech gains lift Nasdaq
Stocks traded mixed in the afternoon session as investors anticipated a key inflation report that could influence the size of an expected interest-rate cut.
The S&P 500 rose 0.3% and the Nasdaq gained 0.7%, while the Dow fell 0.3% due to a 5% drop in JPMorgan Chase after the bank warned its net interest income forecasts were too high.
Oil prices also dropped, with West Texas Intermediate falling over 3% and Brent trading below $70 per barrel.
11:20pm: Quiet morning
A quiet start to trading ahead of the latest CPI data.
Indices, yields and currencies were little changed ahead of the US inflation print, noted Axel Rudolph, Senior Technical Analyst at online trading platform IG.
"US markets were mixed while European indices gave back some of Monday's gains ahead of Wednesday's August CPI print and Thursday's ECB meeting," Rudolph commented.
"The central bank is widely expected to cut its main refinancing rate by 25 basis points to 4.00%. US yields and the US dollar traded slightly higher ahead of widely awaited US inflation data."
9:54am: Nasdaq rallies
The Nasdaq 100 shot up around 0.3% when markets opened today, despite a nearly 2% fall in Apple Inc (NASDAQ:AAPL, ETR:APC)’s share price following a lukewarm reaction to the Cupertino megacap’s new iPhone 16 handset.
The Dow Jones Industrial Average dipped slightly, though the broader S&P 500 index remained well bid, shooting 0.36% higher to 5,490.
Some of the biggest risers on the US markets include Oracle Group, which rallied over 10% following yesterday’s revenue beat; Nvidia Corp, which is in recovery mode following a trouble previous week; and other Magnificent Seven stocks including Tesla, Microsoft and Meta.
8.30am: Apple to drag on tech index
A tepid reaction to Apple Inc (NASDAQ:AAPL, ETR:APC)’s iPhone 16 debut is expected to cause a 0.7% fall on the world’s most valuable company’s share price when US markets open today.
That will not be enough to drag the Nasdaq 100 into the red though- futures contracts have the tech-led index staying flat at 40,834.
Buoyant bids for megacap tech stocks including Microsoft Corp (NASDAQ:MSFT) and Nvidia Corp as expected to keep the index afloat.
The Dow Jones Industrial Average is also tipped to open flat, while the broader S&P 500 is tipped to open 0.25% higher at 5,484.
More reactions to Apple’s new AI-powered handset are expected to filter in throughout the day.
Elsewhere in company news, Gamestop Corp is posting its second-quarter results.