US stocks surged to new records on Tuesday, with Nvidia leading the gains. The day didn’t start off on the best foot, as early-morning economic data briefly caused the S&P 500 and Nasdaq to dip into negative territory. This was due to a disappointing consumer confidence reading, which showed the largest one-month drop in over three years.
The Conference Board’s consumer confidence index for September came in at 98.7, well below the consensus estimate of 104. This drop in consumer confidence was attributed to concerns about the upcoming election, global conflicts, and high costs of food and credit. As a result, investors were dismayed, and there was speculation about a potential half-point rate cut by the Federal Reserve in November.
However, the market bounced back later in the day, with Nvidia playing a key role in the rally. The chipmaker saw a nearly 5% increase in its stock price after CEO Jensen Huang announced that he had completed selling his predetermined shares. This news provided a boost to investor confidence and helped the market recover from the earlier dip.
Outside of the US, emerging market stocks saw significant gains, reaching their highest level in two years. This was driven by China’s announcement of a large stimulus package to revive its economy, which had been struggling.
In commodities, oil futures rose, with West Texas Intermediate crude oil increasing by 1.71% to $71.56 a barrel, and Brent crude jumping by 1.72% to $75.17 a barrel. Gold prices also saw an increase, rising by 1.29% to $2,687.8 an ounce. The 10-year Treasury yield remained flat at 3.734%, while Bitcoin gained 1.55% to $64,305.
Overall, it was a mixed day for the markets, with early concerns about consumer confidence giving way to a strong rally fueled by positive news from Nvidia and China’s stimulus plan. Investors will be closely watching for any further developments that could impact market sentiment in the coming days.
