Overview:
Wall Street closed higher on Tuesday following gains in technology stocks ahead of earnings announcements, supported by falling Treasury yields. Crude oil prices retreated on expectations of Strait of Hormuz reopening. Meanwhile, precious metals held near multi-month highs as investors awaited inflation data. Currency markets remained subdued ahead of the Jackson Hole symposium and key economic indicators.
Details:
The S&P 500 gained 0.40 percent and the Dow Jones Industrial Average rose 0.25 percent on Tuesday, driven by recovery in semiconductor stocks and a decline in Treasury yields. Brent crude futures fell below $90 per barrel, with prices retreating more than 3 percent during the session. West Texas Intermediate crude traded below $81 per barrel, extending losses from the previous session amid hopes for restoration of shipping through the Strait of Hormuz. Gold settled near its highest level in over three months, with futures contracts exceeding $4,700 per ounce, as investors positioned for upcoming inflation data.
In the Asia-Pacific region, the US Dollar remained confined to narrow trading ranges at the start of the session. Bitcoin rebounded toward $80,000 following profit-taking activity earlier in the week, maintaining upward momentum supported by continued buying interest. Bank of Japan announced that board member Naoki Tamura would attend the Jackson Hole Economic Symposium in Wyoming this week, representing Governor Kazuo Ueda. American consumer confidence fell to its lowest level in 2026, with the index declining to 89.4 points in August—below economist expectations of 90.2 points—amid deteriorating employment outlooks and sustained pressure on living costs. US housing starts also weakened, with new home sales falling to their lowest level in six months as elevated mortgage rates constrained buyer demand.
Outlook:
Investors are monitoring inflation reports and Jackson Hole remarks for signals regarding Federal Reserve policy direction. Oil price movements will remain sensitive to geopolitical developments in the Middle East and expectations regarding regional shipping corridor operations.