US stocks closed higher on Tuesday, with all three major indexes posting gains as Nvidia climbed more than 3%. Trading volumes were led by Dell Technologies, which jumped 15% after sharply raising its full-year revenue forecast, while Chinese ADRs were mixed as Youdao fell over 9% and NIO dropped more than 4%.
In commodities, oil prices held firm at elevated levels, copper prices declined, and gold advanced. European equities closed lower as escalating Middle East conflicts fueled inflation concerns.
On the macro front, former President Trump stated that any strike on Iran would not last long and reiterated his desire to control the Strait of Hormuz. He also proposed renaming the strategic waterway to the "Trump Strait." Treasury Secretary Bessent openly pressured the Bank of Japan to hike rates, warning of potential "three-sided pressure" on Tokyo if it fails to comply. Senator Rubio downplayed CIA Director's visit to Moscow, calling it mainly a move to maintain communication channels.
The Federal Reserve's Beige Book reported modest economic growth and a slight increase in overall employment. Treasury Secretary Bessent explained that long-term debt buybacks aim to give banks more room to purchase highly liquid bonds. The White House indicated that oil from the Venezuela agreement could enter US strategic reserves by November.
In corporate news, Meta Platforms unveiled a more powerful AI model, claiming it has further narrowed the gap with competitors. Microsoft will begin disclosing Azure revenue on a quarterly basis as part of its business unit integration. Snowflake surged 22% in after-hours trading on solid results and strong AI coding momentum. Broadcom shares fell 5% after its current-quarter revenue guidance disappointed investors, overshadowing an earnings beat.
Ford continued to boost pickup truck production despite an 10.3% drop in August sales. American Airlines is advancing its premium strategy by retrofitting Boeing aircraft. Uber will cut 10% of its workforce to achieve "leaner and faster" operations.
Oil prices remained stable at high levels amid ongoing US-Iran tensions, helping the S&P 500 snap a three-day losing streak as inflation worries eased. The dollar index fell, with the yen strengthening rapidly and sparking intervention speculation. US Treasuries were broadly steady in quiet trading despite high oil prices.
European bond markets saw German bunds decline for a sixth straight session, while UK gilts outperformed. US private sector employment rose by just 38,000 in August, below expectations. Investors are adjusting and protecting capital amid rising interest rates as bond markets sell off.
White House officials said Trump will meet with executives from American Airlines and other firms today. Apollo Global Management expects Iran war risks and tariffs to push US Treasury yields higher. OPEC+ delegates are expected to maintain current production policy for October. The Netherlands has moved 86 tonnes of gold reserves from the US and Canada to London for rapid access during crises. The US Commerce Secretary further accused Canada of "messing up the trade deal." Berkshire Hathaway CEO Abel noted that data center construction is facing "more resistance."