Stock market today: S&P 500 shrugs off Nvidia slip to close higher
The S&P 500 closed higher Tuesday, as a jump in health care and consumer stocks offset an Nvidia-led dip in tech.
At 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average gained 663 points, or 1.4%, while the S&P 500 index gained 0.9%, and the NASDAQ Composite added 0.7%.
Dell set to report earnings; Nvidia weakness weighs on tech
The latest quarterly reporting period is gradually coming to a close, but there are still a number of companies detailing their results, and Dell Technologies (NYSE:DELL) will headline these after the bell on Wall Street.
The company, whose customers including groups like CoreWeave (NASDAQ:CRWV) and Elon Musk’s AI startup xAI, almost doubled its annual profit growth target for the next four years in October, underscoring its big bet on surging demand for its servers which help power AI models.
Nvidia fell on competition concerns after The Information reported Monday that Google (NASDAQ:GOOGL) is in discussions with Meta to supply the latter with its AI chips in 2027 as part of multi-billion dollar agreement.
Nvidia stock traded sharply lower, weighing on the tech heavy Nasdaq.
Retail stocks shine on earnings stage; health care stocks jump
Abercrombie & Fitch (NYSE:ANF) stock soared after the clothing retailer raised the lower end of annual profit forecast, betting on strong demand for its Hollister dresses, jeans and jackets.
Kohl’s (NYSE:KSS) also impressed after the retailer raised its annual profit forecast for the second time this year, as it banks on new collections and promotions across categories to drive demand while navigating top-level changes.
Best Buy (NYSE:BBY) stock also gained after the electronics retailer delivered stronger-than-expected results for the third quarter of fiscal 2026 and raised its full-year outlook.
Dick’s Sporting Goods (F:DKS) stock jumped after the sporting goods retailer reported third-quarter earnings that fell short of expectations, even as it raised its full-year outlook for its core business.
Health care stocks, meanwhile, were also in the ascendency rising more than 2% on the day, with Merck & Company Inc (NYSE:MRK), Revvity Inc (NYSE:RVTY), and Eli Lilly and Company (NYSE:LLY) leading the gains.
September retail sales show slowing growth
The recent positive tone has been helped by dovish comments from a number of Fed policymakers, prompting resurgent bets that the Fed will cut interest rates further in December.
New York Fed President John Williams said last week that the central bank still could cut rates in the near-term to support the labor market, an this view has been largely echoed by his colleagues Christopher Waller and Mary Daly.
The Wall Street Journal reported on Monday that these allies of Federal Reserve Chair Jerome Powell have laid the groundwork for him to push through an interest rate cut during the central bank’s December 9-10 meeting.
But the decision is likely to be contested in an increasingly divided rate-setting committee, especially as a lack of clear data points for October leave the Fed flying blind into its final meeting for the year.
With this in mind, the release of weaker than expected U.S. retail sales has garnered some attention.
Retail sales rose 0.2% in September, a slowing from the unrevised 0.6% gain in August, the Commerce Department’s Census Bureau said on Tuesday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, rising 0.4% following a previously reported 0.6% increase in August.
The report, originally due in mid-October, was delayed by the 43-day shutdown of the government.
“A far from robust, but still steady, consumer and a broader growth rate on track for +3% suggests little justification, let alone a sense of urgency, for additional policy concessions, at least through year-end,” Stifel said in a Tuesday note.
Still, the odds for a December rate cut remained unchanged from a day earlier at around 80%, according to Investing.com’s Fed Rate Monitor Tool.