The S&P 500 held roughly flat on Tuesday as investors weighed signs of progress toward reopening the Strait of Hormuz against doubts that the U.S. and Iran can reach a broader deal. Nvidia gained on a new AI financing partnership, while traders now turn to this week's inflation data for direction on the Federal Reserve.
The S&P 500 traded near the flatline on Tuesday. The Nasdaq Composite fell 0.4%. The Dow Jones Industrial Average added 202 points, or 0.4%.
Nvidia gains on AI financing deal
Nvidia shares rose more than 1%, keeping the S&P 500 afloat. On Monday, the company said it's partnering with six large asset managers to mobilize more than $500 billion for AI infrastructure.
Oil holds steady as Hormuz talks drag on
The moves came as oil held steady amid uncertainty over the Middle East conflict. Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S. until several conditions are met.
U.S. West Texas Intermediate futures were marginally lower at $81 a barrel. International benchmark Brent crude was also slightly lower at $87 a barrel.
Inflation data looms over the Fed's next move
Investors will next turn to a key batch of inflation data, with the July consumer price report due Wednesday and the producer price index out Thursday. The readings could prove important after a weak jobs report complicated the Fed's outlook.
Higher oil prices are renewing concerns about price pressures just as the sharp slowdown in hiring raises questions about the strength of consumer spending. According to CNBC: "services inflation could continue to be a sticky problem", said Dennis Follmer, chief investment officer at Montis Financial, though he added that sector is not very sensitive to interest rate moves.
Source: CNBC
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