US STOCKS-Wall St recovers as tech bounces back before Nvidia results, inflation data

Wall Street's main indexes rose on Tuesday, as technology stocks recovered from a selloff ahead of AI heavyweight Nvidia's results and an inflation report key to shaping interest rate expectations.

The gains could ease investor concerns sparked by a recent bond market ‌rout that has lifted yields and pressured equities. They could also help set the tone before September, a historically weaker month for stocks. Nvidia's results on Wednesday will be the next test for the earnings-driven rally. Any signs of slowing growth could reignite concerns over stretched valuations and how long the AI boom can sustain.

"This is the classic problem of being the epicenter of the buildout-- ‌when you are the trade, execution stops being a catalyst and becomes a prerequisite," said Mark Malek, chief investment officer at Siebert Financial. "(Nvidia CEO) Jensen (Huang) has to hand the ‌market a new story: Rubin (chips) ramping ahead of schedule, China coming back, something. Otherwise he delivers the greatest quarter in the history of the semiconductor industry and the stock does nothing again."

Markets have grown increasingly wary of cyclical spending in the sector and the methods hyperscalers are using to fund their AI buildouts. TECH STOCKS RECOVER

Most megacaps were trading higher. Nvidia and Meta were up 1.3% and 0.8%, respectively. Chipmakers Intel and Micron added 1.5% and 2.5%, respectively. Data-storage ⁠company Western ​Digital rose 1.8%. The broader chips index recovered 1.5% ⁠after a 2.7% fall on Monday.

Advanced Micro Devices rose 5% after Raymond James upgraded the stock. Dick's Sporting Goods cratered 28% after the retailer slashed its annual forecasts. Sportswear giant Nike also dipped 2.8%.

At 11:30 a.m. ET, the Dow ⁠Jones Industrial Average rose 44.27 points, or 0.09%, to 53,461.43, the S&P 500 gained 18.46 points, or 0.24%, to 7,671.32 and the Nasdaq Composite gained 145.43 points, or 0.56%, to 26,125.62. Declines in consumer-focused stocks such ​as Home Depot and McDonald's left the Dow swinging between gains and losses.

The S&P 500 and the Nasdaq closed lower on Monday, following a sharp selloff in semiconductor ⁠shares even as markets largely shrugged off the latest U.S. economic threats against Iran. Treasury Secretary Scott Bessent said that countries continuing to trade with Tehran could be forced out of the dollar-based finance system.

Malek said the announcement was "good news" for ⁠oil, ​but a rise in gold and bitcoin following Bessent's speech showed "there are some people betting" on the debasement trade. The PCE report on Wednesday could provide greater clarity on price pressures after an in-line consumer inflation reading earlier this month tempered bets on an imminent interest-rate hike by the U.S. Federal Reserve.

On Tuesday, a survey showed U.S. consumer confidence fell ⁠in August to its lowest in seven months. Still, money market participants are pricing in one 25-basis-point rate increase by the end of the year, according to LSEG data.

Against this backdrop, Fed ⁠Chair Kevin Warsh's Jackson Hole speech on Friday ⁠will be closely watched for clues on the central bank's approach to monetary policy. Advancing issues outnumbered decliners by a 1.29-to-1 ratio on the NYSE and by a 1.57-to-1 ratio on the Nasdaq.

The S&P 500 posted six new 52-week highs and four new lows, while the ‌Nasdaq Composite recorded 68 new ‌highs and 65 new lows.