Nasdaq and S&P 500 Achieve Record High Closes

In Tuesday’s trading session, US equities saw marginal gains, with investors closely monitoring Nvidia’s upcoming quarterly earnings and guidance. However, the Dow faced pressure due to significant declines in JPMorgan Chase shares.

The Nasdaq rose by 0.22 per cent, while the S&P 500 and the Dow closed 0.25 per cent and 0.17 per cent higher, respectively. Despite a recent four-week rally driven by the soft-landing narrative, market movements lacked significant directional catalysts. Additionally, the macroeconomic landscape remained subdued, with little new insight from Fed officials. Investors are eagerly awaiting the next crucial inflation data point, still a few weeks away.

Nvidia shares continued their upward trajectory, closing 0.6 per cent higher for the day ahead of its earnings report scheduled for Wednesday after the close. The company is anticipated to report Q1 sales of $US24.7 billion, marking a staggering 243 per cent year-over-year sales growth. Meanwhile, options traders are pricing in potential swings of up to 9 per cent in Nvidia shares in response to the earnings release.

In other company news, Palo Alto Networks shares closed 3.7 per cent lower despite beating expectations for its fiscal third-quarter earnings. Bank of America highlighted that ETF inflows are surpassing single stock inflows for the first time in 2024, with clients consistently purchasing ETFs across various styles and sizes.

In economic updates, central bank Governor Christopher Waller emphasized the need for “several months” of supportive inflation data before considering rate cuts. He indicated that a continued softening in data over the next three to five months could prompt the central bank to lower borrowing costs by the end of 2024.

Among US sectors, Utilities emerged as the top performer, closing up by 0.97 per cent, while Energy lagged behind, closing 0.51 per cent lower. The Biden administration announced plans to release 1 million barrels of petrol into the US northeast market over the next month to manage prices as the summer driving season begins.

In other news, the majority of Shell shareholders supported the company’s revised climate targets, despite environmental groups advocating for stronger emission reduction measures. Approximately 78 per cent of shareholders backed Shell’s adjusted energy transition strategy, although a notable 22 per cent voted against it.

Furthermore, Commonwealth Bank introduced a new initiative in collaboration with property tech platform Coposit, allowing developers to secure off-the-plan sales with buyers contributing an initial deposit as low as $10,000. This initiative aims to accelerate the construction of residential properties by facilitating easier access to pre-sales.

Overall, the US equities market saw mixed results on Tuesday, with investors keeping a close eye on upcoming earnings reports and economic data points for further direction.