US benchmark equity indexes experienced a mixed close on Tuesday, impacted by escalating tensions between Russia and Ukraine as traders anticipated Nvidia's latest quarterly financial results. The Nasdaq Composite climbed 1% to 18,987.5, while the S&P 500 increased by 0.4% to 5,917. Conversely, the Dow Jones Industrial Average saw a decline of 0.3%, ending at 43,268.9.
Technology sectors led the upward momentum, while energy and financial sectors faced the sharpest declines. Ukraine has reportedly targeted a Russian weapons arsenal using US-made missiles. The Biden administration has granted Ukraine permission to deploy longer-range American weaponry against targets in Russia, as detailed by officials. The yield on the US 10-year Treasury fell by 2.2 basis points to 4.39%, whereas the two-year rate remained virtually unchanged at 4.28%. Nvidia, a leading chip manufacturer, is set to announce its fiscal third-quarter results on Wednesday.
Truist anticipates a revenue spike nearing 83% year over year, attributed to a significant backlog reflecting strong demand for its products. Nvidia shares surged by 4.9%, making it the top gainer on the Dow and one of the best performers on both the S&P 500 and Nasdaq indices. Additionally, Super Micro Computer reported a remarkable 31% increase in its shares, emerging as the leading performer on both major indexes.
The AI server manufacturer appointed BDO USA as its independent auditor, and submitted a plan to the Nasdaq Stock Market seeking an extension as it works towards compliance with the exchange’s listing requirements. Walmart raised its full-year outlook after reporting stronger-than-anticipated fiscal third-quarter results, with shares rising 3%, making it the second-best performer on the Dow.
Meanwhile, Lowe's fiscal third-quarter sales slightly underperformed expectations, causing its shares to decline by 4.6%, amidst a perceived slowdown in the do-it-yourself discretionary market. Incyte experienced the steepest drop on the S&P 500, down 8.3%. The company announced a pause in phase 2 study enrollment for MRGPRX2 in chronic spontaneous urticaria due to certain preclinical findings and stated that the data for its phase 2 study on cholestatic pruritus did not support further development. In commodity news, West Texas Intermediate crude oil rose by 0.7% to $69.66 per barrel on Tuesday, while gold climbed 0.8% to $2,635.50 per troy ounce, with silver gaining 0.3% to $31.32 per ounce. Overall, US housing starts decreased more than anticipated last month, largely due to the effects of Hurricanes Helene and Milton which negatively affected construction activity in the South.
Despite this, a rebound in housing starts is expected as rebuilding efforts commence in the most impacted areas..