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US stocks opened higher on Tuesday, August 25, as Treasury yields eased and semiconductor shares gained, with investors weighing fresh economic data and developments on trade and monetary policy.
The Dow Jones Industrial Average rose about 0.4%, while the S&P 500 gained 0.4%. The tech-heavy Nasdaq Composite advanced 0.7%, recovering from Monday’s decline in technology stocks.
The benchmark 10-year Treasury yield continued to ease, supporting equities as investors assessed the outlook for interest rates. Markets are also looking ahead to a closely watched Federal Reserve speech later this week for clues on the central bank’s policy path.
Bitcoin briefly climbed above $80,000 for the first time in three months after Treasury market moves revived concerns about potential dollar debasement, boosting demand for alternative assets. Gold, which has also gained in recent sessions, paused on Tuesday.
Consumer Confidence Falls
Fresh economic data pointed to some softening in the consumer outlook. The Conference Board’s Consumer Confidence Index fell 0.8 point to 89.4 in August, below the 90.2 estimate from economists surveyed by Dow Jones.
The present situation index rose 6.8 points to 121.2, indicating that consumers’ assessment of current conditions improved. However, the expectations index, which measures the outlook for the next six months, fell 5.8 points to 68.2.
The weaker expectations reading highlights growing concerns about the labour market and the broader economic outlook.
New Home Sales Miss Estimates
Separate data showed US new home sales fell short of expectations in July. Sales came in at a seasonally adjusted annual rate of 607,000, below the 620,000 consensus estimate from FactSet.
The July figure also declined from the previous month’s revised rate of 678,000, pointing to some weakness in the housing market.
Investors are now awaiting further economic data for clues on the health of the US economy and the Federal Reserve’s next policy moves.
US markets today: Dow futures gain as Treasury yields retreat; Wall Street awaits Nvidia earnings
US stock futures pointed to a higher open on Tuesday, August 25, as Treasury yields eased and semiconductor shares recovered, with investors positioning ahead of Nvidia’s earnings and the Federal Reserve’s Jackson Hole symposium later this week.
Futures tied to the Dow Jones Industrial Average rose 0.6%, while S&P 500 futures gained 0.5%. Nasdaq 100 futures advanced 0.9%, suggesting technology stocks could rebound after the sector weighed on Wall Street in the previous session.
The benchmark 10-year Treasury yield fell more than 3 basis points to 4.666%, extending its decline from Monday. The move followed reports that the US Treasury could use its roughly $1 trillion General Account to fund bond repurchases, supporting demand for Treasuries.
Chip stocks were among the strongest movers in premarket trading. Nvidia shares rose more than 1%, while Advanced Micro Devices and Micron Technology gained more than 2% each. Intel climbed more than 3% and Broadcom advanced more than 1%.
Investors are awaiting Nvidia’s quarterly results, due after the market close on Wednesday, for fresh signals on the strength of demand for artificial-intelligence chips and data-centre infrastructure. The results are expected to be a key test for the technology sector after Nvidia shares logged a seventh straight session of declines on Monday.
Beyond corporate earnings, investors are also assessing fresh geopolitical and trade developments, including new US sanctions on Iran and trade measures involving Canada.
The focus will then turn to economic data and monetary policy. Investors are due to receive readings on new home sales, weekly employment changes and manufacturing activity on Tuesday, ahead of the Federal Reserve’s preferred inflation gauge, the PCE price index, on Wednesday.
The data will be closely watched ahead of the Jackson Hole symposium, where Fed Chair Kevin Warsh is scheduled to speak later this week. Investors will look for clues on the central bank’s interest-rate outlook and the path of monetary policy.
In individual stocks, Dick’s Sporting Goods fell about 14% in premarket trading after the retailer reported second-quarter revenue below expectations and cut its full-year outlook. The company reported revenue of $5.59 billion, compared with analysts’ expectations of $5.65 billion, according to LSEG.
Dick’s Sporting Goods now expects full-year revenue of $21.9 billion to $22.2 billion, compared with its previous forecast of $22.1 billion to $22.4 billion, citing challenging conditions in the athletic footwear and apparel market.
Investors will also watch earnings from Intuit and Zoom Communications on Tuesday for further clues on the health of the software sector.
Also Read: The $40 trillion question: Why US bond yields are rising and who pays the price
