Falling Treasury yields lifted U.S. stocks Tuesday, with the Nasdaq composite holding its 50-day moving average as chip names rallied ahead of Nvidia's earnings. Canada announced retaliatory tariffs on more than 700 U.S. products, while July new home sales and August consumer confidence both missed expectations.
A decline in Treasury yields sent stocks higher around noon Tuesday, with the Nasdaq finding support at a key technical level. Around midday, the Dow Jones Industrial Average rose less than 0.2%, while the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite advanced 0.6%, finding support at its 50-day moving average, while the small cap Russell 2000 added 0.4%.
Yields Fall, Oil and Bitcoin Move
The 10-year Treasury yield dropped six basis points to 4.65%. West Texas Intermediate crude futures fell to around $81.85 a barrel, and Bitcoin climbed to around $79,500.
Canada Targets 700 Products
Canada announced retaliatory tariffs on the U.S. targeting more than 700 products — including aluminum, appliances and agricultural goods — worth about $20 billion. The action follows 50% levies the U.S. placed on Canadian goods after trade talks between the two countries broke down over the weekend.
Chip Stocks Rally Before Nvidia Earnings
Chip names rallied as investors await Nvidia's second-quarter report due Wednesday. Nvidia rose more than 2%, while Sandisk and Micron advanced nearly 2% each but remained below their 50-day moving averages. Elsewhere, Coherent and Ciena gained 3% to 4%, while Super Micro Computer surged 8%, retaking its 50-day moving average.
Housing and Confidence Data Disappoint
New home sales for July came in at 607,000, below the 620,000 economists expected. Consumer confidence for August also missed, as the Conference Board reported a reading of 89.4 versus an expected 90.1. Earlier Tuesday, the Case-Shiller home price index rose 0.2% in June, up 2.1% year over year, while the Federal Housing Finance Agency index was flat on the month and up 2.3% year over year.
Source: Investor's Business Daily
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