US close: Tech stocks lead markets higher
US stocks finished higher on Tuesday, with the Nasdaq outperforming the other main benchmarks as all Magnificent Seven heavyweights advanced.
The Dow rose 0.3%, rebounding slightly after retreating sharply from a record high the previous session, while the S&P 500 gained 1% and the Nasdaq jumped 1.5%.
Nevertheless, global equity markets were volatile earlier in the day after China’s National Development and Reform Commission underwhelmed failed to deliver more stimulus measures at their conference, causing stocks with heavy exposure to China to drop.
Markets in mainland China rose strongly as traders returned to their desks following the Golden Week break, while the Hang Seng index in Hong Kong – which stayed open during the week-long holiday – tumbled 9.4%.
Oil prices were pulling back sharply on Tuesday after surging to a six-week high the previous session. West Texas Intermediate was down 4.4% at $73.78 a barrel, after topping the $77 mark on Monday on the back of supply concerns amid another escalation of conflict in the Middle East.
In economic news, the US trade deficit narrowed to a five-month low of $70.4bn in August from $78.8bn in July, according to the Bureau of Economic Analysis, slightly lower than the $70.6bn consensus forecast. Exports increased 2% to a record high of $271.8bn, while imports dropped 0.9% to $342.2bn.
Elsewhere on the macro front, the National Federation of Independent Business' September optimism index increased to 91.5 in September, missing forecasts of 91.7 and marking the 33rd consecutive month below the 50-year average of 98.
Market movers
PepsiCo finished higher despite cutting its annual organic revenue guidance as it highlighted a "subdued" performance in North America in the third quarter. The drinks giant now expects organic revenue to rise by low single-digits in FY24, down from a previous forecast of approximately 4% revenue growth, however guidance on earnings came in ahead of market forecasts.
Providing a spark on the Nasdaq was Nvidia, rising 4% after positive comments from the chairman of customer Foxconn about demand. All six of the remaining Magnificent Seven – namely, Apple, Microsoft, Alphabet, Amazon.com, Meta Platforms and Tesla – also rose.
Shares of China-based companies were firmly out of favour, such as Trip.com, JD.com, Baidu and NetEase, while mining stocks like Freeport-McMoRan and Alcoa were weaker due to demand concerns.
Casino operators Las Vegas Sands and Wynn Resorts, which have exposure to China through their Macau operations, were also lower.
Oil stocks sank as they followed the price of crude lower, including Chevron, Marathon Petroleum, HF Sinclair, Valero Energy, Phillips 66, ConocoPhillips, Marathon Oil and Halliburton.
Dow Jones - Risers
Intel Corp. (INTC) $23.32 4.20%
Salesforce.Com Inc. (CRM) $291.57 2.46%
Walgreens Boots Alliance, Inc. (WBA) $9.08 2.37%
Travelers Company Inc. (TRV) $230.34 1.93%
Apple Inc. (AAPL) $225.77 1.84%
Home Depot Inc. (HD) $414.18 1.50%
Microsoft Corp. (MSFT) $414.71 1.26%
Walmart Inc. (WMT) $79.71 0.77%
International Business Machines Corporation (CDI) (IBM) $228.62 0.66%
Procter & Gamble Co. (PG) $168.16 0.62%
Dow Jones - Fallers
Caterpillar Inc. (CAT) $387.96 -2.58%
Dow Chemical Co. (DOW) $53.21 -2.58%
American Express Co. (AXP) $269.11 -1.71%
Chevron Corp. (CVX) $148.75 -1.57%
Boeing Co. (BA) $154.65 -0.81%
Unitedhealth Group Inc. (UNH) $581.58 -0.34%
3M Co. (MMM) $134.69 -0.12%
JP Morgan Chase & Co. (JPM) $210.75 -0.09%
Nike Inc. (NKE) $80.77 -0.07%
Merck & Co. Inc. (MRK) $108.52 -0.06%
S&P 500 - Risers
Edwards Lifesciences Corp. (EW) $68.54 6.20%
Carnival Corp. (CCL) $18.87 4.78%
Synopsys Inc. (SNPS) $517.76 4.63%
Intel Corp. (INTC) $23.32 4.20%
Nvidia Corp. (NVDA) $132.89 4.05%
Baxter International Inc. (BAX) $37.12 3.77%
Norwegian Cruise Line Holdings Ltd (NCLH) $20.80 3.53%
American Airlines Group (AAL) $11.92 3.38%
Tractor Supply Company (TSCO) $303.70 3.35%
Broadcom Inc. (AVGO) $180.73 3.23%
S&P 500 - Fallers
Marathon Petroleum Corporation (MPC) $159.99 -7.66%
Valero Energy Corp. (VLO) $136.34 -5.31%
HF Sinclair Corporation (DINO) $44.51 -4.83%
Celanese Corp. (CE) $129.38 -4.57%
Phillips 66 Common Stock (PSX) $132.33 -4.45%
Freeport-McMoRan Inc (FCX) $48.59 -4.33%
Albemarle Corp. (ALB) $100.26 -4.03%
ConocoPhillips (COP) $110.80 -3.42%
Marathon Oil Corp. (MRO) $28.11 -3.37%
Halliburton Co. (HAL) $30.05 -3.35%
Nasdaq 100 - Risers
Synopsys Inc. (SNPS) $517.76 4.63%
Intel Corp. (INTC) $23.32 4.20%
Nvidia Corp. (NVDA) $132.89 4.05%
American Airlines Group (AAL) $11.92 3.38%
Broadcom Inc. (AVGO) $180.73 3.23%
Check Point Software Technologies Ltd. (CHKP) $197.54 3.15%
Autodesk Inc. (ADSK) $275.08 2.94%
Netflix Inc. (NFLX) $721.76 2.83%
Cadence Design Systems Inc. (CDNS) $270.15 2.77%
Mercadolibre Inc. (MELI) $2,014.23 2.60%
Nasdaq 100 - Fallers
Trip.com Group Limited (TCOM) $61.48 -10.05%
JD.com, Inc. (JD) $43.54 -7.52%
Baidu Inc. (BIDU) $106.01 -7.39%
NetEase Inc. Ads (NTES) $94.43 -5.14%
Wynn Resorts Ltd. (WYNN) $102.88 -3.32%
Qurate Retail Inc. (QRTEA) $0.62 -1.57%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $364.52 -1.48%
Illumina Inc. (ILMN) $139.66 -0.71%
Biogen Inc (BIIB) $182.30 -0.57%
Hasbro Inc (HAS) $72.11 -0.52%