The Dow Jones Industrial Average slipped on Tuesday, dragged down by its large weighting to financial stocks. JPMorgan Chase was down 6% in afternoon trading, despite an announcement that the largest U.S. banks will face only a 9% hike in capital requirements. Ally Financial also warned that consumers are facing difficulties.
The next big tests for markets will likely be the release of consumer inflation data on Wednesday and producer-price numbers on Thursday. The reports should help gauge how fast the Federal Reserve may bring down interest rates. Politics are also taking center stage, with Kamala Harris and Donald Trump set for their first televised debate tonight.
Taxes, immigration, and tariffs are likely to be among the political issues watched for their potential effect on the economy.
Dow drops as financials falter
The tech-heavy Nasdaq Composite cemented its position as the leader of the pack, underscoring the optimism around technology names.
The S&P 500 has been mixed, moving between losses and gains during the day. Technology stocks, even with their exorbitant valuations, have been the market’s darling this year. Investors like artificial intelligence, and companies keep offering new updates that highlight AI.
Oracle’s surge, driven by demand for AI infrastructure evidenced in its earnings, has been the prime example on Tuesday. The stock is up 11%. More stocks are losing ground than gaining by a ratio of about 3 to 2, but when five of the Magnificent 7 are rising and Meta and Apple are down less than 0.3%, it’s going to do a lot to keep the market supported.
In other news, Apple falls after the European Court of Justice says the tech giant must pay back billions of dollars in taxes, and Trump Media trades higher ahead of the first debate between former President Trump and Vice President Kamala Harris.
