Stock markets continue to climb, poised for weekly growth; FedEx experiences a significant rise
The U.S. stock market showed a mixed performance on Tuesday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all ending the day in positive territory. The Dow Jones rose 31.68 points, the S&P 500 gained 13.74 points, and the Nasdaq Composite added 98.63 points.
Apple gained 1.3% following a price target raise from J.P. Morgan, while Tesla rose by 2.6% after Baird upgraded its stock to 'outperform' from 'neutral'. The S&P 500 consumer discretionary sector increased by 0.8%, due in part to the performance of unspecified companies. The tech sector also saw growth, with the S&P 500 tech sector rising 0.5% thanks to the gains of Apple and Tesla.
However, not all sectors fared as well. Financial and energy companies experienced losses of 0.3% and 0.9% respectively. FedEx increased by 1.7% after reporting quarterly profit and revenue above analyst estimates, but Lennar fell 2.5% after the homebuilder reported a lower third-quarter profit and forecast fourth-quarter home deliveries below estimates.
Declining issues outnumbered advancers on the NYSE and Nasdaq by a ratio of 1.32-to-1 and 1.28-to-1 respectively. The Russell 2000 index was down 0.1% after briefly hitting an intraday record high. It had previously notched a record close in November 2021.
The Nasdaq Composite reached an intraday record high during the trading day. The S&P 500 posted 15 new 52-week highs and seven new lows, while the Nasdaq Composite recorded 90 new highs and 21 new lows. Analysts expect volatility from 'triple witching', where options and futures linked to stock indexes and individual stocks expire.
In other news, U.S. President Donald Trump and Chinese counterpart Xi Jinping spoke by phone, seeking to help keep TikTok online in the U.S. and ease tensions. The phone call involved government officials from both countries, including members of their economic and national security teams, with companies like TikTok's parent company ByteDance indirectly involved due to the discussions about TikTok's future in the USA.
Revived optimism around AI-linked stock trading contributed to the rise of the indexes. The Fed is set for a rate cut of 2025 and indications of further monetary policy easing. Minneapolis Fed President Neel Kashkari feels that quarter-point rate cuts at each of the Fed's final two meetings of the year will be appropriate. San Francisco Fed President Mary Daly is set to speak later in the day.
Wall Street's three main indexes are in positive territory so far in September, despite it being historically bad for U.S. equities. The benchmark S&P 500 has shed 1.4% on average in the month of September since 2000. The Russell 2000 index had previously notched a record close in November 2021.
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