The S&P 500 remained near its record high, hovering around the all-time closing high achieved on Friday, marking continued strength in major US indices. According to The Times of India, by 9:35 a.m. Eastern time, the Dow Jones Industrial Average had gained 101 points (0.2%), while the Nasdaq composite edged down 0.1%. This stability comes after the S&P 500 reached a fresh all-time closing high on Friday, marking the strongest week since April for major US indices. The market's resilience reflects investor focus on upcoming economic data, with Wednesday's inflation update expected to show inflation slowed to 3.4% from 3.5% in June, which could reduce pressure on the Federal Reserve to raise interest rates.
Oil prices saw significant volatility, with Brent crude briefly climbing above $90 per barrel during morning trade before retreating to $87.18, down 0.6% from Monday's closing level. According to The Times of India, this volatility continues as investors remain uncertain about when the Strait of Hormuz will reopen and restore global crude oil flows. The rise in crude prices has intensified inflationary pressures, pushing the average US price of a gallon of regular gasoline to $4.01, according to AAA, compared with less than $3.14 a year earlier. During the previous month alone, Brent crude fluctuated between $72 and $102 per barrel as hopes rose and fell that the United States and Iran could reach an agreement. The rise in crude prices has intensified inflationary pressures, with higher oil prices pushing inflation upward and fueling concerns over broader economic impact.
According to CME Group data, traders currently see a slightly better than 50% chance that the Federal Reserve will raise its benchmark interest rate at its September policy meeting, marking the first rate increase in more than three years. As per The Times of India, a moderation in inflation would ease pressure on the Federal Reserve, whose policymakers remain divided over whether further interest rate increases are needed to contain price pressures. The yield on the benchmark 10-year US Treasury note edged lower on Tuesday to 4.68% from 4.72% at Monday's close, though it remains significantly above the 3.97% level recorded before the Iran conflict began. Higher borrowing costs can help curb inflation, but they also slow economic activity by making loans more expensive for US consumers and businesses, while rising interest rates tend to weigh on equity markets and other investment assets.
Cardinal Health rose 8.1% after reporting spring-quarter earnings that exceeded analysts' expectations, becoming the latest major US company to deliver stronger-than-expected results. According to The Times of India, Aramark gained 8.3% after posting quarterly profit and revenue that came in ahead of analysts' estimates. Intel shares fell 0.5% after the company announced plans to increase its stock sale to $20 billion at $95 per share, up from the $15 billion offering announced a day earlier. Intel said it intends to use the funds raised to invest in opportunities created by the rapid growth in demand for artificial intelligence technology, though such share issuances dilute the ownership stake of existing shareholders. Corporate earnings have consistently surpassed market forecasts, a trend welcomed by investors as stock prices generally track profit growth over the longer term.
European stock indexes posted modest gains following a mixed session across Asia, with Hong Kong's Hang Seng Index among the biggest decliners globally, falling 1.1%. According to The Times of India, investors awaited key inflation data that could influence Federal Reserve policy decisions. The yield on the 10-year Treasury rose to 4.70% from 4.65% late Friday, up from 3.97% before the Iran war and already sending mortgage and other loan rates significantly higher. If the Fed raises rates in September, it would mark the first rate increase in more than three years and could draw criticism from President Donald Trump, who has repeatedly called for lower interest rates.
