Wall Street climbs as investors focus on Nvidia results

By Noel Randewich

(Reuters) -The S&P 500 rose on Tuesday in mixed trading ahead of a highly anticipated quarterly report from Nvidia (NASDAQ:NVDA ) on Wednesday and economic data expected later in the week.

The benchmark S&P 500 and the Nasdaq seesawed between gains and losses, with the focus on results on Wednesday from Nvidia, the heavyweight chipmaker at the center of Wall Street's rally in AI-related stocks.

Nvidia's shares were last up 2%, and it was the most traded company on U.S. stock exchanges, according to LSEG data.

Up 161% in 2024, Nvidia is viewed as the biggest winner so far from AI technology, and its results follow recent concerns about increases in already hefty spending by Microsoft (NASDAQ:MSFT ), Alphabet (NASDAQ:GOOGL ) and other heavyweights in their race to dominate emerging AI technology.

"There's a really, really high bar to clear for not just Nvidia's earnings and guidance, but the story they tell about the state of AI that kind of lifts the tech sector out of its recent funk," said Ross Mayfield, investment strategy analyst at Baird.

The Dow Jones Industrial Average dipped after closing at a record high on Monday for the first time in more than a month, on optimism about lower borrowing costs starting next month following U.S. Federal Reserve Chair Jerome Powell's endorsement last week.

The S&P 500 was up 0.25% at 5,630.64 points.

The Nasdaq gained 0.34% to 17,786.32 points, while the Dow Jones Industrial Average was down 0.02% at 41,233.93 points.

Of the 11 S&P 500 sector indexes, six rose, led by information technology, up 0.81%, followed by a 0.47% gain in financials.

Data on Tuesday showed U.S. consumer confidence rose to a six-month high in August, while consumers also became more anxious about the labor market after the unemployment rate jumped to near a three-year high of 4.3% last month.

Investors will look to July Personal Consumption Expenditure data due on Friday for additional hints about the path of rate cuts.

Traders are now betting on an interest rate cut of either 25 or 50 basis points in September, according to CME Group's (NASDAQ:CME ) Fed Watch tool.

Meanwhile, UBS Global Wealth Management raised the odds of a U.S. recession to 25% from 20%, citing weakness in the labor market.

Paramount Global slid almost 6% after Edgar Bronfman Jr. abandoned his bid for the company, clearing the way for Skydance Media to take control of Shari Redstone's media empire.

Tesla (NASDAQ:TSLA ) fell 1.5% after Canada said it will impose a 100% tariff on the imports of Chinese electric vehicles. The duties apply to all EVs shipped from China, which would include those made by Tesla.

Super Micro Computer (NASDAQ:SMCI ) lost 2.6% after short seller Hindenburg Research said it had a short position in the AI server maker.



The PHLX Housing index lost 1.1% after data showed single-family home prices fell in June as higher mortgage rates weighed on demand.

The S&P 500 posted 43 new highs and 1 new low; the Nasdaq recorded 46 new highs and 49 new lows.

Source: Investing.com