The S&P 500 gained ground Tuesday as Treasury yields fell for another day and chip stocks rallied ahead of Nvidia's earnings. Traders are also bracing for Wednesday's inflation print and Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole symposium on Friday.
The S&P 500 climbed 0.4% on Tuesday as Treasury yields fell for another day. The Nasdaq Composite advanced 0.9%. The Dow Jones Industrial Average added 14 points, or 0.03%.
Chipmakers rally ahead of Nvidia earnings
Investors moved into chip stocks as they geared up for Nvidia earnings due Wednesday after the bell. Shares of Advanced Micro Devices and Micron Technology each added 3%. Intel advanced more than 2%.
Nvidia itself rose more than 1%. The iShares Semiconductor ETF moved up more than 2%.
The advance follows a rougher session Monday, when Nvidia reportedly informed customers it would raise server prices, unsettling sentiment toward the chip sector. According to Capital.com's Kyle Rodda: "tech stocks slipped ahead of Nvidia results on Wednesday".
Treasury yields ease as buyback plan advances
The 10-year Treasury yield slid to 4.658% on Tuesday. The decline extended Monday's move, which followed CNBC's report that the Treasury Department could use its $1 trillion General Account to fund bond repurchases.
U.S. crude futures fell more than 3% ahead of Tuesday's open. The retreat eased concerns over energy costs and helped push Treasury yields lower, according to the report.
Inflation data and Fed symposium loom
The personal consumption expenditures price index for July is due Wednesday. Federal Reserve Chairman Kevin Warsh is set to speak Friday at the Fed's annual symposium in Jackson Hole, Wyoming.
Tuesday's gains follow a mixed session Monday, when the S&P 500 dropped 0.3% to 7,652.86. The Nasdaq fell 0.8% to 25,980.19, its lowest close in three weeks. The Dow Jones Industrial Average gained 0.3% to 53,417.16.
Sources: CNBC, TheStreet, Yahoo Finance/InvestorsHub
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