Nasdaq 100 and S&P 500: Nvidia Extends Gains, US Stocks Eye Record Highs

Stocks Mixed as S&P 500 Eyes Record; Nvidia Extends Gains

U.S. stock indexes struggled for direction on Tuesday as the S&P 500 hovered near a record high while the Dow Jones Industrial Average slipped. The Nasdaq Composite saw little movement as traders assessed corporate earnings, economic data, and rising bond yields. The 10-year Treasury yield climbed to 4.52%, adding to market caution.

Dow Drops as UnitedHealth Drags

The Dow Jones Industrial Average lost 49 points, or 0.1%, as weakness in UnitedHealth Group weighed on the index. Since the Dow is price-weighted, declines in high-priced stocks like UnitedHealth had an outsized impact.

Other notable movers included Delta Air Lines, which fell 0.8% after a flight incident, and Medtronic, which dropped 2.5% following weaker-than-expected revenue. Fluor tumbled 5.5% on disappointing earnings. On the upside, Bath & Body Works and Snowflake climbed nearly 4% and 3%, respectively, after analyst upgrades.

Nvidia Extends Rally as AI Demand Surges

Nvidia continued its strong performance, gaining 1.4% in early trading after rising 2.6% on Friday. The AI chipmaker remains a market leader, moving further above its 50-day moving average and nearing a fresh buy point.

Investors are anticipating solid fourth-quarter results from Nvidia next week, with analysts citing strong AI-driven demand as a key growth driver. The stock’s continued strength has been a major factor in the Nasdaq’s resilience, helping offset broader market concerns.

Treasury Yields Climb Ahead of Inflation Data

Bond yields rose in tandem with global markets as traders positioned ahead of the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) report, set for release on Feb. 28. The 10-year Treasury yield ticked up to 4.52%, reflecting concerns about inflation and potential Fed policy adjustments.

FHN Financial strategist Will Compernolle noted that U.S. government debt appears “a tad rich,” suggesting that yields could rise further as investors reassess economic conditions.

Housing Market Sentiment Falls as Costs Rise

The NAHB Housing Market Index dropped five points to 42 in February, marking a five-month low as homebuilders faced higher costs from tariffs and elevated mortgage rates. The decline in sentiment follows a broader trend of rising shelter inflation, which remains a key factor in the Fed’s policy considerations.

Meanwhile, New York’s Empire State Manufacturing Index jumped to 5.7, returning to expansion territory. However, price pressures surged, with the prices paid index hitting its highest level in nearly two years.

Key Market Catalysts Ahead

Markets will closely watch the Federal Reserve’s meeting minutes on Wednesday for any signals on future rate decisions. On Friday, the University of Michigan’s consumer sentiment index will provide a fresh look at inflation expectations.

In earnings, major reports due this week include Walmart, Alibaba, Booking Holdings, and Rivian. With the S&P 500 near record highs and the Nasdaq supported by AI-driven stocks like Nvidia, traders are looking for a catalyst to determine the market’s next move.

More Information in our Economic Calendar.