Key points:

  • Tech stocks are mixed, with Nvidia and Apple rising, Amazon and Tesla falling.
  • US consumer confidence is rising, hitting a six-month high.
  • US unemployment is rising, worrying investors.

U.S. stock indexes showed positive dynamics on Tuesday. The S&P 500 index ended trading with a slight increase, while the Dow Jones Industrial Average set a new all-time high. Market participants are optimistic about the publication of Nvidia‘s quarterly earnings report on Wednesday, as well as economic data that could shed light on the future trajectory of monetary policy.

The S&P 500 rose 0.16%, ending the session at 5,625.80 points. The Nasdaq rose 0.16% to 17,754.82 points, and the Dow Jones Industrial Average rose 0.02% to 41,250.50 points, closing at a record high for the second day in a row.

Tech sector shows mixed dynamics

Tech stocks were mixed on Tuesday, with investors’ attention focused on Nvidia’s upcoming earnings report. As a key player in artificial intelligence, Nvidia has been a major contributor to the recent rally in the U.S. stock market.

Nvidia’s shares rose 1.5% to become the most actively traded stock on U.S. exchanges. The company, which has seen its market cap increase 159% this year, is seen as a major beneficiary of the rise in artificial intelligence. Its earnings are expected amid concerns about tech giants like Microsoft and Alphabet ramping up their AI investments.

Among other big tech names, Apple shares closed slightly higher by 0.4%, while Amazon shares fell 1.4%.

The broad S&P 500 index ended the day slightly higher at 5,625.80. Of the eleven industry indices that make up the S&P 500, six sectors showed positive dynamics, led by information technology (+0.63%) and financials (+0.48%).

Tesla shares fell by 1.9% after Canada announced a 100% tariff on electric vehicles imported from China. This decision will affect all electric vehicles imported from China, including Tesla products.

Super Micro Computer lost 2.6% of its capitalization after the publication of a report by investment company Hindenburg Research, which announced a short position in the shares of the manufacturer of servers for artificial intelligence.

US Consumer confidence at highest

Data released Tuesday showed U.S. consumer confidence rising to its highest in six months in August, while respondents expressed growing concern about a worsening labor market, with the unemployment rate at a nearly three-year high of 4.3%.

Investors are eagerly awaiting July personal consumption spending data, which should provide a clearer picture of inflation dynamics and the potential pace of interest rate cuts by the Federal Reserve. Traders are currently pricing in a 25- or 50-basis-point rate cut at the Fed’s September meeting, according to CME Group’s Fed Watch tool.