US Stocks Mixed: Dow Up, Nasdaq Down on Oil & Nvidia

The US stock market delivered a mixed performance on Tuesday, as investors weighed stabilizing oil prices and the potential reopening of the Strait of Hormuz against persistent US-Iran tensions. The Dow Jones Industrial Average posted gains, while the Nasdaq Composite registered a decline.

Key US Index Movements

• Dow Jones Industrial Average: Increased by 74.29 points, or 0.14%, closing at 54,050.27.
• S&P 500: Gained 4.96 points, or 0.06%, ending at 7,758.07.
• Nasdaq Composite: Declined by 49.365 points, or 0.19%, to 26,555.992 in early trading.

Nvidia shares provided a notable uplift to the broader market, advancing approximately 2% following the chipmaker’s announcement. This surge came after a new partnership with six major asset managers, aiming to mobilize over $500 billion for artificial intelligence infrastructure.

Oil prices maintained relative stability amidst ongoing developments surrounding the Strait of Hormuz. Iran indicated it was nearing an agreement with Oman to facilitate the reopening of this critical shipping route.

However, Tehran reiterated its stance against direct negotiations with the US until specific conditions are met. These conditions include compensation for past violations of a June memorandum of understanding. US West Texas Intermediate futures were slightly lower at around $82 a barrel, with Brent crude also slipping marginally to about $87 a barrel.

Global Market Snapshot

Asian markets presented a varied picture, with South Korea’s Kospi rising and Australia’s S&P/ASX 200 also seeing gains. Conversely, Hong Kong’s Hang Seng and mainland China’s CSI 300 recorded declines.

• South Korea’s Kospi: Rose by 0.73%.
• Australia’s S&P/ASX 200: Gained 0.19%.
• Hong Kong’s Hang Seng: Fell by 1.03%.
• Mainland China’s CSI 300: Declined by 0.79%.

Japanese markets remained closed for a public holiday. European stocks initially showed modest gains, but optimism regarding an immediate reopening of the Strait of Hormuz waned. London’s FTSE 100, France’s CAC 40, and Germany’s DAX subsequently traded below the flatline in early sessions.

Upcoming Economic Data

Investors are now closely monitoring key US inflation data due later this week. The July Consumer Price Index (CPI) is anticipated on Wednesday, followed by the Producer Price Index (PPI) on Thursday.

These upcoming figures are crucial, as they are expected to influence the Federal Reserve’s policy outlook. This comes on the heels of a recent weak jobs report, which had already sparked concerns about the overall health of the US economy.