Stocks rose Tuesday, with the S&P 500 notching a fresh record high of 5,732.93, as market participants broadly shook off a weak consumer confidence reading. The Dow Jones Industrial Average also climbed 80 points and Nasdaq Composite advanced about 0.6%.
Here's how the market settled on Tuesday:
S&P 500 Index (NYSE: SPY): +0.25% or +14.38 points to 5,732.93
Dow Jones Industrial Average (NYSE: DIA): +0.20% or +83.57 points to 42,208.22
Nasdaq Composite Index (NASDAQ: QQQ): +0.56% or +100.25 points to 18,074.52
On the Economic Front:
Consumer Confidence fell by the largest rate in more than three years in September as Americans grew more pessimistic about future business conditions and the job market.
The Conference Board's consumer confidence index declined to 98.7, below August's print of 105.6 and marking the biggest one-month decline since August 2021. For inflation, the 12-month outlook rose to 5.2%, with the majority of consumers being concerned about price increases.
"Consumers' assessments of current business conditions turned negative while views of the current labor market situation softened further. Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income," said Dana Peterson, chief economist at The Conference Board, in a statement.
FedWatch:
Federal Reserve Governor Michelle Bowman said Tuesday she is concerned that inflationary pressures could return, which is why she was the lone dissenter from the Federal Open Market Committee's 50 basis point rate cut last week.
Bowman argued in remarks in Kentucky that the large cut "could be interpreted as a premature declaration of victory on our price-stability mandate. Accomplishing our mission of returning to low and stable inflation at our 2 percent goal is necessary to foster a strong labor market and an economy that works for everyone in the longer term."
In the News:
Novo Nordisk (NYSE: NVO) CEO Lars Fruergaard Jørgensen testified before lawmakers at a Senate Health, Education, Labor and Pensions Committee hearing in Washington, D.C. on Tuesday that he wants to collaborate with Congress to craft policy that will address the "structural issues" that increase prescription drug costs; the hearing was called to address the high prices of the company's weight loss drug Wegovy and popular diabetes treatment Ozempic.
People's Bank of China Governor Pan Gongsheng announced a series of stimulus measures -- including lower borrowing costs and allowing banks to increase lending -- on Tuesday to support economic growth. U.S.-listed shares of Alibaba (NYSE: BABA), JD.Com (NASDAQ: JD), PDD Holdings (NASDAQ: PDD), Baidu (NYSE: BIDU) all rose higher on the news.
For Wednesday:
Market participants will react to more Fedspeak as well as August new home sales data.