US stocks advanced on Tuesday as technology names rallied and investors continued to prepare for Nvidia Corp. earnings and the Jackson Hole Symposium.
The Nasdaq 100 Index gained 0.9% at 9:55 a.m. in New York, with artificial intelligence-linked stocks rebounding. Nvidia was among the notable gainers as the chipmaker was positioned to snap its longest losing streak since 2022 ahead of reporting results Wednesday evening. The S&P 500 Index rose 0.3%.
“The shift in mood has been helped by the decline in the oil price,” said Kathleen Brooks, research director at XTB. “There is also hope that Nvidia’s results, released on Wednesday night, will refresh the AI trade.”
Brent fell to about $89 per barrel as the New York Times reported that the US is preparing to send diplomats back to embassies in the Middle East. This suggests Washington does not expect full-scale conflict to flare up in Iran.
Meanwhile, Treasuries gained as the decline in crude oil eased inflation concerns and the pressure on Treasury Secretary Scott Bessent.
“What’s extraordinary about this cycle and the AI capex that’s powering it is how interest rate insensitive that capex spending is. And so thus far we have not seen rates put a break on these equity markets,” Lisa Shalett, wealth management chief investment officer at Morgan Stanley, said on Bloomberg Television. “I personally do think that the reckoning around at least valuation multiples is coming if in fact this 10-year pushes forcefully through 4.75% on it’s way to 5%.”
Results from Nvidia will be watched closely as traders will attempt to check the health of the AI trade. However, there has been concern that simply posting good numbers will not be enough for the world’s biggest company based on market value.
See more: Bessent & Warsh Go Down the Jackson Hole
Seeking ‘Roadmap on Rates’
Tuesday also marks the start of an economic data-heavy week. Consumer confidence figures will be released at 10 a.m. New York time, with Bloomberg Economics expecting a drop in August amid renewed concerns about the labor market and inflation.
Friday will be the annual Jackson Hole Symposium, where Kevin Warsh will deliver his first major speech as Federal Reserve chairman. Warsh faces criticism that he has not been forthright about his views on the economy.
The conference is “less about immediate policy and more about understanding the longer-term direction of monetary policy, central bank thinking and the implications for investors,” said Ajith Nair, head of portfolio management and research at Isio.
Nair noted investors will be keen on assessing if Warsh’s previous references to a “regime change” will mean a departure from communication style and policy framework of recent years. Due to this, Nair said it would be surprising if Warsh provided explicit guidance on the next rate decision or near-term path of monetary policy.
“For investors hoping for a clear roadmap on rates, the message may therefore prove somewhat frustrating,” said Nair.
What Warsh could say on Friday may be market moving, according to George Goncalves, head of US macro strategy at MUFG. The Fed has a mandate of maintaining stable long-term rates, he noted.
“Do you argue these are stable long-term rates, are they volatile, are they too high? I think any conversation around that on Friday could be market moving,” Goncalves said on Bloomberg Television.
In single-stock moves, Dick’s Sporting Goods Inc. dropped after the retailer lowered its full-year outlook amid weakness at its recently acquired Foot Locker unit. Navitas Semiconductor Corp. gained after announcing an agreement to acquire Claros Inc.
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