United States benchmark indexes finished higher on Tuesday (Wednesday AEST), as technology stocks recovered from their recent selloff ahead of Nvidia's results, while easing oil prices and Treasury yields provided some relief to investors.
The Dow Jones Industrial Average rose 160.2 points, or 0.3%, to 53,577.4, while the S&P 500 gained 24.4 points, or 0.3%, to 7,677.2. The Nasdaq Composite advanced 171.1 points, or 0.7%, to 26,151.3.
The rebound helped ease concerns stemming from a recent bond market selloff that pushed yields higher and weighed on equities.
Longer-dated Treasury yields declined as oil prices fell to a one-week low, while investors continued to assess the implications of Treasury Secretary Scott Bessent's decision to expand Treasury buybacks.
Nvidia's results on Wednesday (Thursday AEST) will provide the next major test for the earnings-driven rally.
Signs of slowing growth could revive concerns over elevated valuations and the sustainability of the artificial intelligence boom.
Investors have also become increasingly cautious about cyclical spending and the financing methods being used by hyperscalers to fund their AI infrastructure buildouts.
Major technology stocks ended higher, with Nvidia gaining 2.2%, Microsoft adding 0.9% and Meta Platforms climbing 2%. Advanced Micro Devices jumped 4.9%, while Micron Technology rose 2.5%.
Elsewhere, Dick's Sporting Goods plunged 30.7% after the retailer lowered its full-year forecasts.
Attention now turns to the Personal Consumption Expenditures report on Wednesday (Thursday AEST), which could provide further insight into price pressures. An in-line consumer inflation reading earlier this month had reduced expectations for an imminent interest-rate hike by the U.S. Federal Reserve.
Meanwhile, a survey released on Tuesday showed U.S. consumer confidence fell to a seven-month low of 89.4 in August, down from 90.2 in July and below expectations for a reading of 90.2.
Against this backdrop, investors will also focus on Fed Chair Kevin Warsh's speech at Jackson Hole, Wyoming, for clues on the central bank's monetary policy outlook.
On the bond markets, 10-year and two-year Treasury yields fell 1.6% and 1.5%, respectively, to 4.623% and 4.176%.
