Stock Market Today: Dow and S&P 500 Soar on Nvidia Surge to New Record Highs

The S&P 500 and Dow reached closing record highs on Tuesday, ignoring signs of consumer concerns regarding the economy, as Nvidia continued to fuel a tech rally.

At 4:00 p.m. ET, the S&P 500 rose by 0.3%, achieving a new closing record of 5,735.66. The NASDAQ Composite climbed 0.6%, while the Dow Jones Industrial Average gained 83 points, or 0.2%, also closing at a record high of 42,208.22.

### Nvidia Drives Tech Sector Upward

Nvidia saw its stock price jump nearly 4%, adding to its recent gains and supporting the overall upward trend in the tech sector. This momentum occurred despite recent reports indicating that the company has ceased taking orders for its H20 chips due to compliance with U.S. export restrictions on semiconductor equipment to China.

### Consumer Confidence Tumbles; Fed Remains Cautious

The Conference Board’s consumer confidence index dropped to 98.7 from August’s 105.6, marking the largest single-day decline in three years. Users surveyed identified job security and inflation as their primary concerns.

These consumer jitters surfaced as Federal Reserve officials emphasized that upcoming economic data will influence their approach to further rate cuts. Fed Governor Michelle Bowman noted the need for caution regarding rate adjustments, as some inflation metrics remain “uncomfortably above” the target of 2%.

Bowman, who dissented in the September meeting regarding the 50 basis points rate cut, initiated a week of discussions that will include contributions from Chair Jerome Powell and other Fed members. Minneapolis Fed President Neel Kashkari suggested a slower pace for future rate cuts following an aggressive start to monetary easing, while Atlanta Fed President Raphael Bostic indicated the economy is returning to normalcy more rapidly than expected, but does not foresee a rush to cut rates.

The Federal Reserve recently reduced rates, aligning with the upper limits of market predictions, signaling the commencement of an easing cycle that analysts project will see rates lowered by 125 basis points by year-end. The upcoming data on the PCE price index, the Fed’s preferred inflation measure, is expected to influence future rate strategies. Additionally, the September Consumer Board confidence index will be released later in the session.

### Corporate Updates: Boeing, Deere and Visa

In corporate news, Boeing’s stock dipped by 0.9% following a revised labor deal offered to over 30,000 striking workers in the Pacific Northwest. The aerospace giant’s new proposal includes a 30% wage increase over four years, enhanced retirement benefits, and an increased bonus for ratification, which Boeing labeled as its “best and final” offer.

Deere & Company saw its stock rise 0.5%, despite threats from former President Donald Trump to impose a “200% tariff” on the agricultural manufacturer should it move production to Mexico.

Visa’s stock price fell over 5% after the U.S. Department of Justice lodged an antitrust lawsuit against the payment company, alleging that some of its debit card practices are anti-competitive.