US stocks rally as oil and yields ease ahead of Nvidia earnings and Jackson Hole
The S&P 500 and Nasdaq futures recovered on Tuesday as investors balanced new trade measures against Canada and Iran with upcoming corporate earnings and Federal Reserve signals.
US stock futures recovered on Tuesday, 25 August, with the S&P 500 and Nasdaq-100 gaining as investors weighed new trade measures against Canada and Iran, Nvidia’s upcoming earnings, and Federal Reserve Chair Kevin Warsh’s first Jackson Hole speech. While US futures pointed higher, stocks in Asia broadly fell following new US sanctions on Iran and Nvidia’s seventh consecutive daily loss. The Dow Jones Industrial Average and the S&P 500 rose 0.4 per cent in early trading, while the tech-heavy Nasdaq Composite climbed by a stronger 0.7 per cent.
Bitcoin surged above $79,000 for the first time in three months, driven by concerns over dollar debasement following Treasury intervention in the bond market. Oil prices dropped 3 per cent, with WTI crude sitting above $82 per barrel and Brent hovering near $88 per barrel. The 10-year Treasury yield fell five basis points to 4.64 per cent, and the 30-year yield declined to 5.18 per cent.
Domestic economic indicators showed weakness, with consumer confidence and new home sales both hitting their lowest levels since January. The Conference Board consumer confidence index fell to 89.4 in August, missing economist expectations of 90.2. Dana Peterson, chief economist at the Conference Board, noted that consumers were more pessimistic about business conditions and the labour market over the next six months.
US new home sales fell to an annualised rate of 607,000, down from 628,000 in the previous month and below the 620,000 expected by economists. High mortgage rates have proven sticky, turning away prospective buyers, with new home sales declining in three of the last four months according to US Census Bureau data.
In corporate news, Dick’s Sporting Goods shares fell 14 per cent in premarket trading after the retailer missed earnings expectations and lowered its full-year outlook. The company cited challenging conditions from heavy discounting by competitors and underperforming product launches. Nvidia stock posted its seventh consecutive daily loss, marking its longest losing streak since 2022, with the share price down approximately 7 per cent over the period.
The US imposed a 50 per cent tariff on a wide range of Canadian goods, including furniture, dairy, electrical products, and plywood, though crude oil was excluded. Treasury Secretary Scott Bessent also announced new sanctions on Iran. Apple debuted new versions of the Mac Mini and Mac Studio, featuring M6, M5 Pro, M5 Max, and M5 Ultra processors, aimed at AI developers.
