The S&P 500 traded within reach of its record high on Tuesday, as gains in industrials and utilities offset weakness in heavyweight tech stocks. Reports that the United States and Iran are nearing a peace arrangement pulled oil prices lower, while traders also weighed this week's inflation data ahead of the Federal Reserve's next rate decision.
At 9:52 a.m. ET, the S&P 500 lost 2.27 points, or 0.03%, to 7,750.84, while the Dow Jones Industrial Average rose 221.79 points, or 0.41%, to 54,197.77 and the Nasdaq Composite slipped 92.18 points, or 0.35%, to 26,513.18. Industrials and utilities were the S&P 500's biggest gainers, helping offset declines in heavyweight tech and communication-services stocks, with Nvidia up 1.2% while Microsoft and Apple each slipped, by 0.8% and 1% respectively.
Iran peace signals pull oil lower
Pakistani Defense Minister Khawaja Asif told Bloomberg that signals from recent days indicated a peace agreement was close, a claim echoed by Qatar's foreign ministry, which said Iran-Oman talks on shipping in the Strait of Hormuz had reached an advanced stage. Late Monday, Trump told reporters the U.S. Navy had cleared the strait of mines.
Brent crude futures turned lower after reaching their highest level in over a week; rising energy costs have spurred inflation concerns and complicated the paths of central banks globally. According to Reuters, oil pulled back as the prospect of a resolution took hold: "Any positive news is better than negative news."
S&P 500 tests its record high
The S&P 500 trades near its all-time high of 7,793.68, reached last week, with a break above that level shifting focus to an upward-sloping trendline near 7,850.00 on the hourly chart. Last Tuesday, the index broke above its previous record of 7,617.37, moving away from a swing area between 7,577.92 and 7,617.37 that now marks a downside risk zone. The Nasdaq, by contrast, remains below its all-time high of 27,190.21 set in early June, with resistance at a swing area between 26,605.36 and 26,788.62.
Wednesday's consumer price index report is the market's next catalyst for inflation, followed by producer prices a day later. Traders remain split almost evenly on whether the Federal Reserve raises rates in September or pauses, according to the CME FedWatch Tool.
Sources: Reuters, Investor's Business Daily, Investinglive
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