U.S. stocks finished higher on Tuesday, marking a volatile trading session that ultimately saw the S&P 500 reaching a new all-time high. Investors demonstrated cautious optimism as they awaited further data to guide their decisions.
The Dow Jones Industrial Average, which fluctuated between gains and losses during the session, closed with an increase of 83.57 points, or 0.2%, at 42,208.22—setting a new intraday record. The S&P 500 added 14.36 points, or 0.25%, to conclude at 5,732.93, just shy of its pinnacle of 5,735.32. Meanwhile, the Nasdaq Composite surged by 100.25 points, up 0.56%, closing at 18,074.52.
Nvidia Corporation shares surged approximately 4%, while Caterpillar also climbed around 4%. Uber Technologies saw a rise of 3.7%. Other significant gainers included Tesla, Home Depot, Netflix, Salesforce, AMD, Comcast Corporation, and Nike, each advancing between 1% and 3%.
Contrarily, Visa Inc. shares plummeted sharply following the U.S. Department of Justice's antitrust lawsuit against the company, citing anti-competitive practices related to its debit card operations.
Other notable decliners included Starbucks, Citigroup, Amgen, Wells Fargo, Abbott Laboratories, PepsiCo, Bank of America, Costco, Mastercard, and Microsoft Corporation.
On the economic data front, U.S. consumer confidence saw a marked decline in September. The Conference Board reported that its Consumer Confidence Index dropped to 98.7 in September, down from an upwardly revised 105.6 in August. This was below economists' expectations, who had forecasted a slight dip to 103.0 from the initially reported 103.3 for August.
Furthermore, the S&P CoreLogic Case-Shiller 20-city home price index indicated a 5.9% year-over-year increase in housing prices for July 2024. This marked a deceleration from the 6.5% rise recorded in the previous month.
The Federal Reserve Bank of Richmond's composite manufacturing index also reflected negative sentiments, falling to -21 in September 2024 from -19 in August, missing the forecast of -17. This index pointed to the sharpest decline in factory activity since May 2020.
Internationally, Asian equity markets advanced on Tuesday after China's central bank announced its largest stimulus package since the pandemic to bolster the economy and address the ongoing slump in the property sector. The measures included lowering borrowing costs and injecting additional liquidity to facilitate lending, alongside regulatory plans to ensure stable stock market development.
European markets also closed higher, bolstered by investor optimism following the Chinese central bank's stimulus initiatives aimed at invigorating the world's second-largest economy.