Stock market today: Tech, Nvidia lead stocks higher as oil prices retreat, China rally stalls

Stocks closed in a sea of green on Tuesday, led by AI heavyweight Nvidia (NVDA).

The Nasdaq Composite (^IXIC) rose around 1.5% while the benchmark S&P 500 (^GSPC) closed within striking distance of its previous record high, rising about 1%. The Dow Jones Industrial Average (^DJI) edged up roughly 0.3%, or more than 100 points.

Nvidia stock is doing the number go up meme again.

The stock rose more than 3% on Tuesday — marking its fifth-straight day of gains — as shares quickly approach their all-time closing high of $135.58. Since its recent low on Aug. 7, the stock is now up more than 34%.

That includes a significant drawdown after Wall Street largely felt the AI juggernaut's recent earnings release was good but not good enough. Investors were concerned about signs of slowing revenue growth in the coming quarters and the potential for an overall cooling in the AI spending spree.

But in the past month, those concerns seem to have gone by the wayside. The stock rose more than 5% in a single trading session after CEO Jensen Huang touted "insane" demand for its next-generation Blackwell chip in a CNBC interview. On Tuesday, the stock chugged higher as Nvidia further highlighted the use cases for its AI software and services at a D.C. AI summit.

The stock pop Tuesday was the latest sign that after all the turbulence around the stock in August, investors are clearly still bulled up on the AI theme and searching for reasons to buy the stock.

Trump Media & Technology Group stock (DJT) extended gains by another 13% on Tuesday after closing more than 10% higher on Monday.

The moves come as investors assess current Vice President and Democratic nominee Kamala Harris's recent media appearances, along with a surprise cameo by Elon Musk at Donald Trump's rally in Butler, Pa., over the weekend. It was the same location where the former president survived an assassination attempt in July.

Tech billionaire Musk, who serves as the CEO of Tesla (TSLA) and SpaceX and also owns social media platform X (formerly Twitter), has been outspoken about his support of Trump ahead of next month's election.

The former president remains in a deadlocked race against Harris, who just embarked on a flurry of media appearances in an attempt to solidify recent momentum in the polls.

Harris appeared on an episode of "Call Her Daddy," a popular podcast catered toward Generation Z, along with a sit-down interview for CBS' "60 Minutes."

In the one-on-one interview with CBS correspondent Bill Whitaker, Harris defended her proposals on the economy and immigration but was pressed on how she would fund some of these efforts.

Trump backed out of an interview with the program last week after previously agreeing to the sit down, according to the network.

Read more here.

Technology (XLK) and Consumer Discretionary (XLY) led Tuesday's sector action, up about 1.4% and 0.8%, respectively.

Tech megacaps, led by Nvidia (NVDA), pushed markets higher to recoup some of the previous session's losses, with the Nasdaq Composite (^IXIC) up more than 1%. Nvidia climbed as much as 4%, its highest intraday move since July, on more positive sentiment surrounding its Blackwell chips.

Energy was the day's biggest laggard after crude oil (CL=F) dropped roughly 4% to trade just above $74 a barrel. The drop comes after oil's recent rally, spurred by the ongoing conflict in the Middle East, took a breather while China disappointed on more stimulus measures. Brent (BZ=F), the international benchmark price, also dropped 4% to hover north of $77.50.

The third quarter earnings reporting period will kick off in earnest when some of the nation's largest banks report quarterly results on Friday.

Wall Street projects earnings to grow 4.7%, which would mark the fifth straight quarter of growth since the same period a year prior. But it would also be the slowest year-over-year growth since the fourth quarter of 2023.

Given stocks have charged higher than normal between reporting periods, Deutsche Bank chief equity strategist Binky Chadha isn't expecting the typical 2% rise in the S&P 500 (^GSPC) during the first four weeks of earnings reports.

"Earnings seasons are typically positive for equities, but the strong rally and above-average positioning going in argue for a muted market reaction," Chadha wrote in a note to clients.

Read more here.

The recent surge in Chinese stocks hit the pause button on Tuesday after Beijing failed to roll out another large stimulus package, a surprise to investors hoping to add more fuel to the unprecedented rally.

Hong Kong's benchmark Hang Seng Index (^HSI), which is loaded with large Chinese stocks, dropped around 9% on Tuesday, its worst day since October 2008, after climbing around 20% over the past month on the heels of China unleashing its most aggressive monetary stimulus since the onset of the pandemic.

China’s benchmark CSI 300 (000300.SS) also experienced a volatile day as expectations of a large stimulus announcement fueled an initial 10% rise after markets reopened from the country's weeklong holiday. The index later gave up those gains, finishing the day up a more modest 6%.

The stimulus, a response by China to course-correct its struggling economy, was first announced on Sept. 24. Since then, a surge of inflows has dramatically boosted Chinese equities, particularly in real estate and consumer staples, as investors bet on Beijing's comeback.

At a press conference on Tuesday hosted by China's top economic planner, the National Development and Reform Commission (NDRC), Beijing said it's committed to enacting further support in order to reach its economic goals, which includes an annual growth target of "around 5%."

On Tuesday, the Shanghai Composite (000888.SS) still eked out gains of around 5%. The index has rallied by double digits, jumping more than 20% from its September lows. It's up about 30% over the past month.

Similarly, shares of Chinese e-commerce giants like Alibaba (BABA) and PDD Holdings (PDD) have surged over that same period, up more than 35% and 55%, respectively, despite single-digit losses on Tuesday.

Read more about what this could mean for investors here.

Oil sank on Tuesday as the recent rally stemming from the Middle East conflict took a pause and China disappointed investors on its stimulus.

West Texas Intermediate (CL=F) tanked more than 4.5% while Brent (BZ=F), the international benchmark price, also slipped more than 4.5%.

The reversal comes after crude futures surged about 12% over the past five sessions on speculation that a retaliatory move from Tel Aviv against Tehran in the ongoing Middle East conflict could involve targeting Iran's oil infrastructure.

"The delayed response by Israel to counterattack could mean further talks may happen first," Dennis Kissler, senior vice president of trading for BOK Financial Securities, said in a note on Tuesday.

"Oil futures had moved to an 'overbought' condition and without underlying escalation of attacks a corrective phase looks underway," he added.

Oil also came under pressure after a Chinese economic planner told reporters Beijing is "fully confident" the country will meet its 2024 targets but made no mention of any large or new measures, signaling stalled demand from the world's largest oil importer.

Apple's iPhone 16 (AAPL) may have had more momentum out of the gate than its predecessor, according to KeyBanc analysts. But it's not enough to quell concerns about sales overall.

KeyBanc analysts said in a note Tuesday that spending on the iPhone 16 in the first 10 days after its launch in September was 12% higher than it was in the same period following the iPhone 15's rollout.

KeyBanc based its conclusions off data from nearly 2 million KeyBank credit and debit card customers, looking at Apple transactions greater than $400.

KeyBanc said the data "does appear more positive than we would have anticipated." But analysts said iPhone 16 demand faded quickly: "We saw initial strong demand for iPhone 16, but momentum tailed off."

"The data should calm concerns on the September quarter, though does little to change our more cautious view on the 'super cycle,' as upgrade rates are likely to continue to decline."

So far, Wall Street has perceived the iPhone 16 launch as somewhat weak. Analysts have cited shorter shipping times for the iPhone 16 than past iPhones. In other words, demand must be weaker if people are waiting less to get their new iPhones.

US stocks opened higher on Tuesday after all three major indexes closed Monday's session in the red.

The benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each climbed around 0.5%, while the Dow Jones Industrial Average (^DJI) edged up roughly 0.3%.

Oil prices, which have surged amid Middle East tensions, retreated early Tuesday. Crude oil (CL=F) fell about 3% to trade just below $75 a barrel.

PepsiCo (PEP) lowered its sales outlook for the year, forecasting organic revenue growth in the low single digits below the previously expected 4% growth. As Yahoo Finance's Brooke DiPalma reports, PepsiCo's third quarter revenue trailed behind Wall Street's estimates, coming in at $23.3 billion, versus the $23.8 billion expected.

CEO Ramon Laguarta said in the release that Pepsi's performance was impacted by "subdued category performance trends in North America," the impact of recalls at Quaker Foods North America, and business disruptions from "rising geopolitical tensions in certain international markets." In a phone interview with Yahoo Finance, Laguarta said consumers are "very challenged" and they are making a "lot of trade-offs" when it comes to food. Those trade-offs are weighing on the snacks business most acutely, Laguarta explained.

PepsiCo stock fell nearly 1% in premarket trading. Read the full story here.