U.S. stocks closed higher on Tuesday, with the S&P 500 reaching a new record high. The rise was driven in part by a sharp rally in shares of NVIDIA Corporation (NASDAQ: NVDA), which saw significant gains during the session.
In corporate earnings news, Thor Industries, Inc. (NYSE: THO) exceeded analysts’ expectations, reporting stronger-than-expected earnings for its fourth quarter, boosting investor sentiment. On the other hand, AutoZone, Inc. (NYSE: AZO) posted weaker-than-expected earnings for the same period, which weighed on its stock performance.
Housing Market Data
On the economic front, housing market indicators showed signs of moderating growth. The S&P CoreLogic Case-Shiller home price index increased by 5.9% year-over-year in July, slowing from the 6.5% rise in June. Similarly, the Federal Housing Finance Agency (FHFA) reported a modest 0.1% rise in home prices for July, slightly below market expectations of a 0.2% increase. These figures suggest that the housing market may be cooling, though it remains elevated compared to historical norms.
Consumer Confidence Drops
The biggest economic data surprise came from consumer confidence, which recorded its steepest one-month decline in over three years. The confidence index fell to 98.7 in September, reflecting growing concerns among consumers about economic conditions and potential future challenges. This significant drop could signal caution ahead for consumer spending, which is a critical driver of U.S. economic growth.
Sector Performance
Most sectors in the S&P 500 closed in positive territory on Tuesday. Materials, information technology, and consumer discretionary stocks posted the largest gains, as investors showed optimism toward these industries. Notably, the strong performance of technology stocks, led by NVIDIA, helped push the broader market higher. However, the financials and utilities sectors diverged from the positive market trend, closing lower as investors rotated away from more defensive and interest-rate-sensitive stocks.
Major Index Movements
- The Dow Jones Industrial Average gained 84 points, closing at 42,208.22.
- The S&P 500 rose by 0.25%, finishing the session at 5,732.93, marking a new record high.
- The Nasdaq Composite outperformed, advancing by 0.56% to close at 18,074.52.
Overall, Tuesday’s session reflected optimism in key growth sectors, despite lingering concerns around consumer confidence and softer housing market data. As investors continue to digest corporate earnings and economic indicators, the market remains focused on the outlook for inflation, Federal Reserve policy, and broader economic conditions.
