Stocks Flip To Losses, Nvidia Defies Gravity, Bitcoin Pauses For A Breather: What's Driving Markets Tuesday?

Tuesday on Wall Street was marked by a subdued trend in major equity indices as investors remained cautious ahead of key inflation data scheduled for release on Thursday and the kick-off of the earnings season.

Among the major indices, the Nasdaq 100 outperformed with a slight 0.1% gain, while the S&P 500 and the Dow Jones experienced small declines of 0.2% and 0.6% respectively. The S&P 500, as tracked by the SPDR S&P 500 Equal Weight ETF RSP, slipped 0.4%.

Small-cap stocks, represented by the iShares Russell 2000 ETF IWM, retreated by 0.9%, partially offsetting Monday’s robust 1.9% surge.

Notable chipmakers continue to make headlines. Nvidia Corp. NVDA soared over 3% to a new record high, reaching $539 per share. Meanwhile, peer Advanced Micro Devices Inc. AMD gained 2.1%.

On Monday, Federal Reserve Governor Michelle Bowman shifted her previously hawkish stance, now viewing U.S. monetary policy as “sufficiently restrictive” and signaling openness to potential interest-rate cuts as inflation eases. Treasury yields remained steady, while the U.S. dollar saw some modest gains in the forex market.

In the world of cryptocurrencies, Bitcoin BTC/USD experienced a slight decline of about 1%, just ahead of the eagerly anticipated SEC decision regarding the approval of a spot Bitcoin ETF, expected to be announced on Wednesday.

Tuesday's Performance In US Major Indices, ETFs

The SPDR S&P 500 ETF Trust SPY inched 0.2% lower to $473.55, the SPDR Dow Jones Industrial Average DIA fell 0.6% to $374.73 and the tech-heavy Invesco QQQ Trust QQQ edged 0.1% higher to $405.38, according to Benzinga Pro data.

Sector-wise, tech was the only sector avoiding losses, with the Technology Select Sector SPDR Fund XLK up 0.1%. The Energy Select Sector SPDR Fund XLE was the laggard, down 1.3%.

On an industry level, semiconductors sharply outperformed, with the VanEck Semiconductor ETF SMH up 3%. Stocks in the oil and gas downstream industries fell the most, with the VanEck Oil Services ETF OIH down 2.5%.

Tuesday's Stock Movers

• Shares of Juniper Networks Inc. JNPR experienced a significant rally, jumping almost 22% on Tuesday, following reports that Hewlett Packard Enterprise HPE is approaching a deal worth $13 billion to acquire the networking equipment company. Hewlett Packard Enterprise fell 8%, reacting to the news.
• Boeing Company BA fell 0.6%, after dropping as much as 8% on Monday.
Sarepta Therapeutics, Inc. SRPT saw a significant 11.7% increase in its stock price, continuing to gain traction following a nearly 6% surge on Monday, driven by the company’s strong preliminary results for both the fourth quarter and full-year 2023.
• Unity Software Inc. U experienced a 7.9% decline in its stock value following the company’s announcement on Monday that it plans to reduce its workforce by 1,800 employees, constituting 25% of its total workforce.

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