The Nasdaq outperformed Tuesday as a drop in oil prices eased pressure on growth stocks, and Nvidia snapped a seven-session losing streak. The S&P 500, excluding the AI complex, was essentially unchanged, with much of the headline move driven by a short squeeze ahead of Nvidia's earnings.
WTI crude fell more than 3% to below $82 a barrel, while Brent settled beneath $90 a barrel, as easing tension over Iran and the Strait of Hormuz let traders unwind some of the war premium built into crude. Pakistan's army chief wrapped up a visit to Tehran that Iranian media described positively, and Iran and Oman discussed restoring navigation through the Strait of Hormuz. Meanwhile, Washington's latest pressure campaign stopped short of the harsher measures many had feared.
Nasdaq Outperforms as Nvidia Snaps Losing Streak
The Nasdaq outperformed, semiconductors bounced, and Nvidia snapped a seven-session losing streak, though the S&P 500, excluding the AI complex, was essentially unchanged. A sizeable short squeeze gave the headline indices more polish than the underlying market breadth likely deserved.
Treasuries rallied across the curve, with thirty-year yields falling around six basis points on the day and roughly ten basis points from Friday, helped by softer oil, weaker consumer confidence and a slightly softer growth pulse. Expanded long-duration Treasury buybacks are also easing pressure at the long end of the curve, though they have not solved the underlying fiscal problem.
Nvidia Earnings Raise the Bar
Nvidia is expected to report quarterly revenue near $92 billion, almost double the level of a year earlier, with the market treating the print as a test of whether AI capital spending still justifies the money behind it. Momentum-driven positioning around the AI trade remains at the high end of history even after a deleveraging move in July.
Gold and Bitcoin Hold Their Ground
Gold pushed toward $4,700 an ounce before fading, and Bitcoin briefly traded above $81,000, as the dollar softened. Investors kept a hedge in hard assets even while buying technology stocks on lower yields.
The risk for Nvidia is not necessarily a miss but a strong quarter the market shrugs off because expectations already outrun normal measures of excellence.
Source: Investing.com
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