On Tuesday, American stock markets recorded growth. S&P 500 (+0.6% to 7818.93) and Nasdaq Composite (+0.45% to 27599.79) set new historical highs. Dow Jones increased by 0.5% (reaching 51521.28 points).
Why it matters. The decline in oil prices and government bond yields has eased investor concerns, allowing focus to shift to Q3 earnings reports. According to LSEG forecasts, S&P 500 companies' profits rose by 30.6%:
Market drivers.
Technology and IT. Strategic announcements from AMD (+2.8%) and Marvell Technology (+5.8%) boosted growth in the semiconductor sector (Nvidia, Qualcomm, Broadcom).
Energy and data centers. Google (Alphabet) signed a long-term contract with Constellation Energy to supply data centers with nuclear power; Constellation Energy's shares jumped by 12.3%.
Major deal (M&A). Option Care Health's shares rose by 32.7% amid news that McKesson and the CD&R fund are acquiring it for $5.8 billion.
Fed interest rate expectations. According to FedWatch, traders now see only a 19% chance of a rate cut by the Fed at this month's meeting (down from 51% a week ago).
Companies with declining stocks. Contrary to the overall trend, stocks of Seagate (-9.2%), Moderna (-7.8%), Western Digital (-6.9%), Salesforce (-2.1%), and Boeing (-1.5%) fell.
