TSX runs higher on rate cut expectations
Investing.com - The S&P 500 fell for the second-straight day Tuesday, as data showing the biggest slump in consumer confidence since August 2021, stoked further jitters about the economy just a day ahead of crucial quarterly results from Nvidia (NASDAQ:NVDA) later this week.
At 1:56 p.m. ET (18:56 GMT), the 30-stock Dow Jones Industrial Average rose by 160 points or 0.4%, the benchmark S&P 500 fell 0.5%, and the tech-heavy Nasdaq Composite fell 1.4%.
Consumer Confidence Nosedives, Sparking Further Economic Jitters
U.S. consumer confidence deteriorated for a third straight month in February, according to a survey from The Conference Board, in the latest sign that American households are fretting over the effect tariffs and inflation could have on the path ahead for the wider economy.
The Conference Board said its consumer confidence index fell to 98.3 this month, down from an upwardly-revised mark of 105.3 in January. It was the biggest monthly decline since August 2021. Economists had predicted a reading of 102.7.
The data added to concerns about the economy following a string of weaker data including softer retail sales and Michigan consumer sentiment readings, pressuring Treasury yields.
Nvidia Slide Continues Ahead of Earnings; Tesla market cap falls below $1tn; Hims & Hers, Zoom Communications slide on outlook worries
Nvidia fell more than 1%, adding to its losses from a day earlier, when sentiment on chip stocks were soured following a Bloomberg News report that the White House was seeking to toughen Biden-era controls on semiconductor technology exports to China -- especially chips from Nvidia.
The ongoing slide in Nvidia comes just ahead of its all-important earnings on Wednesday.
Tesla Inc (NASDAQ:TSLA), meanwhile, fell more than 8%, taking its market cap below $1 trillion as the EV maker saw a 45% drop in sales in Europe, according to data from the European Automobile Manufacturers’ Association.
Hims & Hers (NYSE:HIMS) warned that it may stop selling legal copies of a popular weight-loss drug made by Denmark’s Novo Nordisk (NYSE:NVO), sending shares in the U.S. telehealth firm down by 22.5%.
Zoom Communications’ (NASDAQ:ZM) stock price also fell more than 8% the video conferencing group unveiled first-quarter and full-year revenue guidance that missed analysts’ estimates.
Still the weaker outlook was a "speed bump," Wedbush said, adding that the Zoom is "well-positioned to optimize its sales strategies to better align growth opportunities" and sees a path for the company to "generate durable profitable growth over the coming years as new solutions come to market and deliver improved customer experiences."
Home Depot Inc (NYSE:HD) rose nearly 3% after reporting fourth-quarter earnings that topped estimates as comparable sales turned positive for the first time in eight quarters.
(Scott Kanowsky contributed to this report.)