Traders work on the floor of the New York Stock Exchange.
NYSE
The S&P 500 was slightly higher on Tuesday, while oil prices steadied, as investors weighed signs of progress toward reopening the Strait of Hormuz against lingering doubts that the U.S. and Iran can reach a broader resolution to the conflict.
The broad market index rose 0.1%, while the Nasdaq Composite gained 0.3%. The Dow Jones Industrial Average added 117 points, or 0.2%.
Nvidia shares offered a boost to the broader market, rising around 2%. On Monday, the company said it’s partnering with six large asset managers to mobilize more than $500 billion for artificial intelligence infrastructure.
The moves come as oil prices held steady amid uncertainty over the Middle East conflict.
Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S. until several conditions are met.
Iranian Foreign Minister Abbas Araghchi said Sunday there was “no possibility of restarting negotiations” as long as the U.S. continues violating the June memorandum of understanding and does not compensate Iran for those violations, according to the semi-official Tasnim News Agency.
U.S. West Texas Intermediate futures were marginally lower at $81 a barrel. International benchmark Brent crude was also slightly lower at $87 a barrel.
In Asia, South Korea’s Kospi closed 0.73% higher, while Australia’s benchmark S&P/ASX 200 added 0.19%. Hong Kong’s Hang Seng index was down 1.03% and the mainland CSI 300 was down 0.79%. Japan markets are closed for a holiday.
European stocks advanced marginally amid waning investor optimism of an imminent reopening of the Strait of Hormuz.
London’s FTSE 100, France’s CAC 40 and Germany’s DAX were all below the flatline in early trade.Â
Investors will next turn to a key batch of inflation data, with the July consumer price report due Wednesday and the producer price index out Thursday. The readings could prove particularly important after a weak jobs report complicated the Fed’s outlook.
The inflation reports could put the Fed in a difficult position. Higher oil prices are renewing concerns about price pressures just as the sharp slowdown in hiring raises questions about the strength of consumer spending and the broader economy.
“I expect the CPI report to continue its downward trend which will further support the case for the Federal Reserve to hold rates steady rather than hiking them, even with last Friday’s weak jobs report,” said Dennis Follmer, chief investment officer at Montis Financial.
“Services inflation could continue to be a sticky problem, but that sector is not very sensitive to interest rates, so it shouldn’t really damage the case for holding steady,” he added.
