Wall Street calm/ stock market stable/ steady market trends/ Newslooks/ New York/ U.S. stocks are experiencing a moment of calm after weeks of sharp fluctuations, with the S&P 500 gaining slightly while the Dow Jones remains mostly unchanged. The market remains cautious ahead of key inflation reports and the Federal Reserve’s upcoming decision on interest rate cuts.
Stock Market Calm: Quick Looks
- S&P 500 Rises: The index is up 0.3% in early trading.
- Fed Meeting Looms: Investors await interest rate cuts as recession fears linger.
- Inflation Reports: Key data due this week may impact the Fed’s decision.
- Tech Giants Affected: Oracle soars, while Apple and Google face legal hurdles in Europe.
Wall Street Steady After Weeks of Market Volatility
Deep Look
On Tuesday, U.S. stocks held relatively steady after enduring weeks of sharp market swings. Investors breathed a sigh of relief as the S&P 500 rose by 0.3% during early trading, signaling a brief pause in market volatility. At the same time, the Dow Jones Industrial Average was down by only 17 points, or less than 0.1%, and the Nasdaq composite saw a 0.2% increase.
The stability in the markets follows a turbulent period marked by concerns over the U.S. economy’s slowing growth and uncertainty regarding the Federal Reserve’s anticipated cuts to interest rates. With the Fed’s next meeting on the horizon, investors are closely watching how much the central bank will reduce its interest rate, which has been at a two-decade high. These cuts are intended to stave off a potential recession, but there remains debate over whether they will be enough—or come too late—to keep the economy on track.
Oracle and Tech Sector Movements
In corporate news, Oracle surged by 12.1%, leading the market after exceeding analysts’ expectations for both profit and revenue in its latest quarter. However, not all tech companies shared Oracle’s good fortune. Apple slipped 1.7% following a setback in Europe. The European Union’s top court rejected Apple’s final legal appeal, ordering the company to repay over 13 billion euros (more than $14 billion) in back taxes to Ireland. This ruling stems from accusations that Apple had an illegal tax agreement allowing it to pay reduced rates, a claim Apple continues to deny.
Meanwhile, Google faced its own legal challenges. The tech giant lost a key antitrust case in Europe, with the EU penalizing the company 2.4 billion euros ($2.7 billion) for favoring its shopping services in search results. Despite this, shares in Alphabet, Google’s parent company, were up by 1%.
Bond Yields and Economic Reports
In the bond market, Treasury yields remained stable. The yield on the 10-year Treasury note dipped slightly to 3.69%, down from 3.70% on Monday. Investors are awaiting crucial inflation reports, which are expected to influence the size of the Federal Reserve’s interest rate cuts. Economists predict that the upcoming inflation report will show a slight decline, with prices in August anticipated to be 2.6% higher than a year ago, compared to 2.9% in July.
Additionally, traders are preparing for the next political catalyst: the debate between Vice President Kamala Harris and former President Donald Trump. Although many analysts believe the debate may not have a significant impact on market movements, it could affect investor sentiment ahead of the election.
Global Market Movements
Overseas markets saw mixed results. Stocks in Hong Kong and Shanghai were up slightly, benefiting from positive data showing China’s exports had grown for the fifth consecutive month, signaling increasing demand abroad. European indexes also saw modest gains, adding to the overall cautious optimism in global markets.
