Wall Street Soars to New Heights Despite Early-Morning Jitters
US stocks defied early-morning economic concerns to reach record-breaking levels on Tuesday, driven largely by a remarkable 5% surge in Nvidia shares. The chipmaker’s CEO, Jensen Huang, announced he had completed his predetermined stock sale, sending the company’s stock soaring by nearly 4%. This boost helped investors shrug off a dismal consumer confidence report, which had initially sent the S&P 500 and Nasdaq into negative territory.
The Conference Board’s consumer confidence index plummeted to 98.7 in September, its largest one-month decline in over three years, sparking concerns about the impact of the upcoming election, global tensions, and rising living costs. However, the market’s resilience was evident as it quickly rebounded from the early-morning dip.
Emerging market stocks also experienced a significant upswing, reaching their highest level in two years, thanks to China’s ambitious stimulus package aimed at reviving its struggling economy. As a result, US indexes closed at record highs, with the S&P 500 finishing at 5,732.93, the Dow Jones Industrial Average at 42,208.22, and the Nasdaq composite at 18,074.52.
In other market news, investors are increasingly betting on a half-point rate cut in November, with odds rising to 60.7% according to the CME FedWatch Tool. Meanwhile, oil futures surged, with West Texas Intermediate crude oil jumping 1.71% to $71.56 a barrel, and gold rose 1.29% to $2,687.8 an ounce. The 10-year Treasury yield remained flat at 3.734%, and Bitcoin gained 1.55% to $64,305.
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