TLDR
- The Dow, S&P 500, and Nasdaq all closed higher on Tuesday, with the Nasdaq up 0.7%
- Bitcoin briefly crossed $80,000 for the first time in three months, driven by dollar debasement fears
- Chip stocks rallied early but lost steam ahead of Nvidia’s earnings report on Wednesday
- Dick’s Sporting Goods stock dropped 13% after missing Q2 expectations and cutting its full-year outlook
- Fed Chair Kevin Warsh is set to speak at the Jackson Hole Symposium later this week
US stocks edged higher on Tuesday as investors pushed past concerns about new trade measures against Canada and Iran. The Nasdaq led the gains, rising 0.7%, while the Dow and S&P 500 each rose around 0.4%.
Market breadth told a different story, though. The Invesco S&P 500 Equal Weight ETF fell 0.2%, which means if every stock in the index carried the same weight, the market would actually be down on the day.
Chip Stocks Stall Before Nvidia Reports
Semiconductor stocks got off to a strong start, helped by falling bond yields and oil prices. But the momentum faded as the session wore on.
The iShares Semiconductor ETF trimmed its gain to around 1% by midday. Investors appear cautious about chasing chip stocks higher ahead of Nvidia’s earnings, due Wednesday.
Nvidia and Marvell Technology are both set to report this week. Wall Street will be watching closely for signs of continued demand for AI chips. Expectations are already high, which raises the risk if either company falls short.
Bitcoin Crosses $80,000 on Dollar Concerns
Bitcoin briefly rose above $80,000 on Tuesday, its highest level in three months. The move came after the Treasury’s intervention in the bond market sparked fresh concerns about the long-term value of the US dollar.
Investors moved into alternative assets as a result. Gold has also rallied in recent days but pulled back slightly on Tuesday.
Dick’s Sporting Goods was one of the day’s biggest losers. The retailer’s stock fell 13% before the opening bell after it missed second-quarter expectations and cut its full-year earnings outlook, citing tough conditions in the athletic retail market.
Intuit and Zoom Communications also reported earnings on Tuesday, giving the market a read on the health of the software sector.
On the economic data side, new home sales, ADP employment figures, and manufacturing activity numbers were all scheduled for release Tuesday. A PCE inflation reading is due Wednesday.
All of this sets the stage for the Federal Reserve’s Jackson Hole Symposium later this week. Fed Chair Kevin Warsh is expected to deliver his first speech as chair, and markets will be listening closely for clues on the direction of interest rates.
The combination of AI earnings risk, a rising bitcoin, and a major Fed speech gives investors plenty to watch in the coming days.
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