Wall Street Sees Modest Gains
On Tuesday, Wall Street concluded a volatile trading day with slight increases in stock prices, leaving major indexes just shy of their recent all-time highs.
The S&P 500 finished 0.4% higher after experiencing fluctuations between minor gains and losses throughout the day. The index closed just 2.6 points below its record high reached earlier this month, failing to recover entirely from previous day’s losses.
The Dow Jones Industrial Average also rebounded from an early downturn, ending with a 0.3% increase. Meanwhile, the Nasdaq composite added 0.4%.
This hesitant start to the week follows significant gains in the prior week, fueled by optimism over potential interest rate cuts from the Federal Reserve.
Technology, financial, and industrial stocks contributed to the upward movement, compensating for losses in communication services and other sectors. Nvidia, a major chipmaker, saw its shares rise by 1.1%, while JPMorgan Chase increased by 1.2%.
Boeing recorded a notable gain of 3.5% after Korean Air announced a $50 billion deal to purchase over 100 aircraft from the company. Additionally, Dish Network’s parent company, EchoStar, skyrocketed by 70.2% following AT&T’s announcement of a $23 billion acquisition of some of its wireless spectrum licenses.
Treasury Yields and Market Dynamics
Most Treasury yields dropped in the bond market, with the 10-year Treasury yield declining to 4.26% from 4.28% late Monday. The broader market was subdued amid President Donald Trump’s intensifying conflict with the Federal Reserve. Trump announced on Monday his decision to dismiss Federal Reserve Governor Lisa Cook, who plans to sue to contest her firing.
This dispute highlights Trump’s ongoing friction with the central bank over its cautious interest rate strategies. Having kept rates steady since late 2024 due to concerns that Trump’s unpredictable tariff policies may spark inflation, the Fed faces increasing political pressure. Notably, Trump has also hinted at dismissing Fed Chair Jerome Powell but is only one of twelve votes that influence interest rate decisions.
Despite these tensions, Wall Street anticipates a benchmark interest rate cut during the Fed’s September meeting, with traders estimating an 87% likelihood of a 0.25 percentage point reduction.
The two-year Treasury yield, which closely follows Fed expectations, fell to 3.68% from 3.73% late Friday. The Fed has been focused on controlling inflation through interest rate adjustments and has largely succeeded without stalling economic growth, thanks to robust consumer spending and a strong job market.
As inflation nears the targeted 2%, the Fed began cutting interest rates late in 2024 but paused in 2025 due to concerns surrounding Trump’s tariff strategies. Economists expect inflation for July to stay around 2.6%, and businesses have cautioned of rising costs related to tariffs.
Consumer confidence dipped slightly in August amid growing worries about a weakened job market. The decline from The Conference Board’s monthly survey aligns with economists’ predictions.
Market Wrap Up
Overall, the S&P 500 increased by 26.62 points to close at 6,465.94, the Dow gained 135.60 points finishing at 45,418.07, and the Nasdaq rose by 94.98 points to settle at 21,544.27. Additionally, crude oil prices declined, and European and Asian markets closed lower.
