Investing.com: S&P 500 Rises Despite Weakness in Energy and Financials Ahead of Key Inflation Report
In a surprising turn of events, the S&P 500 managed to cut losses and close higher on Tuesday, boosted by a climb in tech stocks that offset weakness in energy and financial sectors. At 2:43 p.m. EST, the benchmark index gained 0.5%, while the tech-heavy Nasdaq rose 0.8%, and the Dow Jones fell 92 points or 0.2%.
The market's performance was mixed as investors awaited the release of the consumer price index data for August, scheduled for Wednesday.
Tech stocks stole the spotlight despite Apple facing challenges following an EU court ruling that it must repay 13 billion euros in back taxes. The ruling came just a day after Apple unveiled its new iPhone 16, set to hit the market on Sept. 20.
On the other hand, energy stocks took a hit as oil prices dropped over concerns of oversupply and weakening demand. OPEC revised its demand forecast downward, leading to a more than 4% slump in oil prices. Adverse weather conditions, including Tropical Storm Francine, also disrupted production and refining activities in the Gulf of Mexico.
Financials also faced headwinds as Wall Street banks signaled caution about future earnings. JPMorgan and Goldman Sachs led the sector lower after expressing concerns about net interest income and trading revenue.
In positive news, Oracle shares surged on strong guidance for its cloud business, while JetBlue announced a board shake-up amid pressure from activist investors.
Lastly, all eyes are on the upcoming debate between Vice President Kamala Harris and former President Donald Trump, with recent polling data suggesting a tight race for the White House. The debate is scheduled for 9 p.m. ET.
In conclusion, the market's performance reflects a mix of challenges and opportunities across different sectors. Investors should stay informed about key economic indicators and corporate developments to make informed decisions about their finances.