Stock Market Today: S&P 500 Climbs Higher on Nvidia-Led Tech Surge

Investing.com—The S&P 500 experienced a significant uptick, primarily driven by Nvidia, as investors turned their attention to technology stocks with the onset of the third-quarter earnings season.

By 4:00 p.m. ET (2000 GMT), the Dow Jones Industrial Average gained 126 points, or 0.3%, the S&P 500 rose by 1%, and the NASDAQ Composite increased by 1.4%.

Nvidia Boosts Tech Sector; DocuSign Set to Enter S&P 500 MidCap 400 Index

Nvidia led the technology sector’s rally, fueled by positive sentiments regarding chip demand. Foxconn Chairman Young Liu remarked that the demand for their servers, which utilize Nvidia’s forthcoming Blackwell chip, has been "much better than we thought."

Alphabet saw a slight increase in its stock price following a court order mandating that its Google unit modify the Android operating system to enable competitors to create their own app marketplaces and payment systems, which poses a challenge to the company’s defenses against antitrust allegations.

DocuSign is set to join the S&P 500 MidCap 400 index on Friday, replacing MDU Resources, resulting in a more than 6% surge in its stock price.

PepsiCo Kicks Off Q3 Earnings Season; Honeywell’s Spin-Off Plans Generate Excitement; Roblox Targeted by Short Seller Report

PepsiCo’s stock rose 1.9% after the beverage giant reported third-quarter earnings that surpassed expectations; however, its revenue fell short due to weaker performance in North America and disruptions in international business.

Honeywell’s stock increased by more than 1%, following reports that the conglomerate plans to separate its Advanced Materials business.

Conversely, Roblox Corp’s stock dropped over 2% after short seller Hindenburg Research accused the online gaming company of inflating crucial metrics, including active user counts and engagement hours on its platform.

Fed Speakers Active on Economic Outlook

On the economic front, there is a scarcity of data set to influence interest rate expectations on Tuesday, although the minutes from the September Federal Reserve meeting will be released on Wednesday, and the September consumer price index will be unveiled on Thursday, with investors keenly observing any indications of persistent inflation.

Federal Reserve officials are actively discussing the rate outlook. Boston Federal Reserve President Susan Collins indicated that additional rate cuts may be necessary as inflation declines. Meanwhile, Atlanta Fed President Raphael Bostic noted that the robust labor market suggests ongoing economic strength.

Traders currently anticipate an 80.9% likelihood that the Federal Reserve will lower rates by 25 basis points in November, with a 19.1% chance of no cuts occurring at all.

Additionally, traders are adjusting their expectations for a higher terminal rate in the Fed’s current easing cycle. The central bank had reduced rates by 50 basis points in September and initiated an easing cycle, but emphasized a data-driven approach for future cuts.