Stock Market Update

[BRIEFING.COM] With little in the way of macro catalysts or corporate news, the major averages traded sideways for much of the session before an uptick in buying activity saw the Nasdaq Composite (+0.4%) establish a new record high (21,891.42) and closing high, while the S&P 500 (+0.3%) and DJIA (+0.4%) captured record closing highs of their own.

The major averages benefitted from broad-based sector strength, with the communication services sector (+1.7%) leading the way, supported by strong leadership in its mega-cap components, Alphabet (GOOG 239.94, +5.78, +2.47%) and Meta Platforms (META 765.70, +13.40, +1.78%).

Mega-caps as a unit had a relatively subdued session, though they especially benefitted from the late afternoon buying pickup. The Vanguard Mega Cap Growth ETF (+0.3%) closed with a decent gain after spending the day oscillating around its flatline.

Yesterday's top movers, the information technology (flat) and consumer discretionary (+0.1%) sectors, clawed just above their opening levels after a long stint in negative territory, though their improvement was particularly supportive to the final standings of the S&P 500 and Nasdaq Composite.

While today's advances were modest in nature, they were broad-based, as only the materials (-1.6%), industrials (-0.7%), and real estate (-0.1%) sectors finished lower. 

Despite a scarcity of corporate headlines, UnitedHealth (UNH 348.18, +27.93, +8.72%) made a significant upward move following amendments to the company's guidance disclosure.

Meanwhile, Apple (AAPL 234.35, -3.53, -1.48%) traded lower following the company's annual product launch event, with investor focus on iPhone pricing. The iPhone Air will debut at $999 as the slimmer entry model, while the price of the iPhone Pro rose by $100 to $1,099. 

There were no notable economic data releases today, though attention centered on the preliminary benchmark revision to payroll growth estimates for March 2024-March 2025. The revision showed a record overstatement of 911,000 jobs, confirming expectations for a significant downward adjustment.

The stock market had a muted reaction to the revision, as rate cut expectations hardly changed in response. The market is still fully pricing in a 25-basis point rate cut at the September FOMC meeting, while the CME FedWatch assigns an 8.2% probability of a 50-basis point cut, down from 10.6% yesterday.

While smaller cap indices might have gained momentum in response to heightened expectations for a 50-basis point cut, the Russell 2000 retreated 0.6%, with the S&P Mid Cap 400 slipping 0.9%.

Market focus now turns to tomorrow's release of August PPI data, with CPI to follow on Friday. Those inflation readings, if hotter than expected, could revive concerns about the broader health of the economy and test the market's conviction in its current rate cut expectations for the October and December FOMC meetings.

U.S. Treasuries retreated on Tuesday, making for a shallow pullback after four days of gains that sent yields to their lowest levels in at least three months. There was some light buying after the U.S. Treasury kicked off this week's note and bond auction slate with a strong sale of 3-year notes that saw stellar foreign demand. The 2-year note yield settled up five basis points to 3.54% and the 10-year note yield settled up three basis points to 4.72%.

• Nasdaq Composite: +13.3% YTD
• S&P 500: +10.7% YTD
• DJIA: +7.4% YTD
• Russell 2000: +6.8% YTD
• S&P Mid Cap 400: +4.7% YTD

Reviewing today's economic data:

• The NFIB Small Business Optimism Index rose to 100.8 in August from 100.3 in July.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.4%), and DJIA (+0.4%) are holding on to decent gains as the market enters the final half hour of trading. 

While an increase in buying activity has improved sector strength this afternoon, the information technology sector (-0.2%) remains below its flatline.

Apple (AAPL 233.93, -3.95, -1.66%) trades lower following its product release event, which unveiled the new iPhone 17, among other products, but came with a $100 price increase on its iPhone Pro model. 

Microsoft (MSFT 498.52, +0.32, +0.06%) trades flat after The Information reported that the company will purchase AI technology from Anthropic, shifting away from its OpenAI collaboration. 

Chipmakers are also putting up a flat performance, with the PHLX Semiconductor Index unchanged for the day. 

[BRIEFING.COM] The DJIA (+0.5%) is now just a handful of points away from establishing a new all-time high, while the S&P 500 (+0.2%) and Nasdaq Composite (+0.2%) also trade near session highs.

The communication services sector (+1.6%) supplants the energy sector (+1.4%) as the best-performing S&P 500 sector, supported by Alphabet (GOOG 239.76, +5.60, +2.39%) setting new all-time highs as the stock continues to rally following last week's favorable antitrust ruling.

Elsewhere in the sector, Bloomberg reports that Meta Platforms (META 763.72, +11.42, +1.52%) has signed a deal with AI image startup Black Forest Labs, furtherirng the company's substantial recent investments in the AI realm. 

[BRIEFING.COM] The S&P 500 (+0.22%) is in second place on Tuesday afternoon, up about 14 points.

Briefly, S&P 500 constituents Centene (CNC 30.57, +1.73, +6.02%), Coinbase Global (COIN 316.56, +14.36, +4.75%), and Norwegian Cruise Line (NCLH 25.42, +0.89, +3.63%) dot the top of the standings. CNC is higher possibly in sympathy to managed care peer UnitedHealth's (UNH 348.42, +28.17, +8.80%) gains, NCLH rallies after BofA analysts highlighted that its $3.4 bln debt refinancing extends maturities, cuts annual interest by ~$25 mln, reduces dilution by ~38 mln shares, and crucially was not an equity raise.

Meanwhile, Albemarle (ALB 72.41, -9.59, -11.70%) is firmly today's worst laggard, leading lithium peers lower after reports that CATL will restart production at its Chinese mine, reviving supply concerns and pressuring lithium prices.

[BRIEFING.COM] With about two hours to go on Tuesday the tech-heavy Nasdaq Composite (+0.20%) is in last place, up about 43 points.

Gold futures settled $4.80  higher (+0.1%) at $3,682.20/oz, reflecting ongoing bullish momentum rooted in expectations of Fed rate cuts, dovish monetary policy sentiment, and supportive dollar and yield dynamics. These trends continue to bolster the yellow metal's appeal as both a hedge and a speculative asset.

Meanwhile, the U.S. Dollar Index is now about +0.3% higher to $97.73.