New all-time highs as Nvidia surges offset weak consumer confidence

• US stocks hit new records on Tuesday, led by gains in Nvidia.

• A weak reading on consumer confidence sent indexes briefly lower in early morning trading.

• Emerging market stocks hit two-year highs on China's stimulus package.

U.S. stocks continued their winning streak on Tuesday, with indexes climbing to new records.

However, gains failed to consolidate early on as early morning economic data briefly boosted the S&P 500 Index and Nasdaq index in the red.

Investors reacted with dismay following the latest reading of consumer sentiment, as confidence among US consumers posted its biggest monthly drop in more than three years.

The Conference Board's consumer confidence index came in at 98.7 in September, well below consensus estimates of a reading of 104.

“It's never a good thing to see consumer confidence drop this much. Consumers are clearly concerned about the fallout from the upcoming election, rising conflicts around the world and persistently high costs of food and credit,” said Jamie Cox, managing partner at Harris Financial Group.

“The Fed rarely gets signals right about when and how much to cut rates, but 50 seems more accurate in light of this data.”

Markets seem to agree and the odds of a half-point cut in November rose to 60.7%, according to the CME FedWatch Tool.

However, after the drop, the market recovered later in the day with a rally of almost 5% in Nvidia helping investors weather the discouraging consumer spending update.

The chipmaker ended the day up about 4% after news broke that Chief Executive Officer Jensen Huang had finished selling shares for now. Under a predetermined trading plan, the executive was allowed to sell 6 million shares of Nvidia stock through early next year, but he barely hit that threshold, Barron's first reported.

Outside the US, emerging stock markets posted big gains. Stocks hit their highest level since 2022 while China announced its largest stimulus package to revive its ailing economy.

Here is where the US indices stood at the close of trading at 4:00 pm on Tuesday:

Here's what else is happening:

The story continues

In commodities, bonds and cryptocurrencies:

• Oil futures rose. West Texas Intermediate Crude oil rose 1.71% to $71.56 a barrel. Brent crude oilThe international benchmark rose 1.72% to $75.17 a barrel.

• Gold rose 1.29% to $2,687.8 an ounce.

• The yield on the 10-year Treasury note was steady at 3.734%.

• Bitcoin gained 1.55% to $64,305.

Read the original article at Business information