Share up as oil, yields fall ahead of PCE

(AWP Alliance News) - Shares ended higher in New York on Tuesday as oil prices and bond yields declined, while investors brace for Nvidia earnings and a key inflation reading on Wednesday.

The Dow Jones Industrial Average closed up 160.24 points, 0.3%, at 53,577.40. The S&P 500 rose 24.42 points, 0.3%, to 7,677.28. The Nasdaq Composite ended up 171.11 points, 0.7%, at 26,151.30.

"Markets regained some poise on Tuesday as government bond yields eased back from their recent highs, helped by lower oil prices. Brent crude oil was back below USD90 per barrel on hints of diplomatic progress in the Middle East. US sanctions on Iran were less severe than anticipated and Pakistan's army chief made a visit to Tehran aimed at de-escalation. US stocks managed modest gains at the open on Wall Street, with Nvidia's crunch quarterly earnings drawing ever closer. Retailer Dick's Sporting Goods was a notable faller as it missed expectations and pointed to a difficult footwear market, offering a reminder of the fragile consumer backdrop across the Atlantic," wrote AJ Bell head of markets Dan Coatsworth.

Nvidia ended up 2.2% ahead of second quarter earnings on Wednesday. AMD jumped 4.9%, Qualcomm gained 1.3%.

Analysts surveyed by Bloomberg expect Nvidia's revenue to roughly double to USD92 billion compared to the second quarter of 2025.

The yield on the 10-year US Treasury narrowed to 4.63% on Tuesday from 4.71% on Monday. The 30-year yield was at 5.16%, down from 5.24%.

CNBC reported on Monday that the US Treasury could use a USD1 trillion general account to help fund its recently announced plans to increase purchases of government bonds, citing to two senior Treasury officials.

Oil declined Tuesday following reports that Iran and Oman had discussed the establishment of a temporary shipping corridor in the Strait of Hormuz.

Oman's Foreign Minister Badr al-Busaidi and Iran's Foreign Minister Abbas Araghchi "discussed a phased framework that could provide a practical and implementable basis for moving forward" in talks in Tehran, a joint statement shared by Oman said.

A barrel of Brent fetched USD88.27 on Tuesday, down from USD92.06 on Monday. West Texas Intermediate fell to USD81.99 from USD85.03.

Canada on Tuesday announced counter-tariffs on US goods ranging between 15% and 50%, intensifying the trade war between the historically close allies.

Ottawa's retaliation takes effect September 8, a time frame earlier outlined by Prime Minister Mark Carney after US President Donald Trump's 50% duties on Canadian products came into place Saturday.

Canada's government also announced a USD5.4 billion aid package for impacted firms and workers.

"This is an unprecedented challenge imposed on Canada. But Canada will meet the moment," Canada's Finance Minister Francois-Philippe Champagne said, adding: "I think what Canadians can see this morning is that we stand united. We stand united in our response."

Against the dollar, the euro was at USD1.1674, up from USD1.1663. Sterling rose to USD1.3650 from USD1.3630. Against the yen, the dollar was at JPY159.14, down slightly from JPY159.15.

"After weakness through much of August, the dollar has firmed this week following the latest Iran sanctions, with Bessent warning that entities helping Tehran circumvent restrictions could ultimately be cut off from the US dollar payments system," said Anwari. "The move is another reminder of the structural importance of the dollar within the global financial system, while safe-haven demand could provide further support if tensions escalate."

US Treasury Secretary Scott Bessent had late on Monday laid out plans for the "economic asphyxiation" of Iran, expanding Washington's secondary sanctions threats and introducing new penalties. Those affected include entities in the UAE, Singapore, China and other regions, although a Chinese foreign ministry spokesperson reiterated that his government "firmly opposes illegal unilateral sanctions" and will "firmly safeguard its own rights and interests".

Gold rose to USD4,666.82 an ounce from USD4,653.80 on Monday.

In Europe, London's FTSE 100 ended up 0.3%. The DAX 40 rose 0.6% in Frankfurt. The CAC 40 in Paris fell 0.2%.

In China, the Shanghai Composite closed up 0.2%. The Hang Seng closed flat in Hong Kong. The Nikkei 225 in Tokyo rose 0.5%. The S&P/ASX 200 ended up 0.7%.

Exxon Mobil is interested in Shell's US chemical assets sale which could be worth USD8 billion, the Financial Times reported on Monday.

Exxon and chemical company LyondellBasell are potential bidders for the assets, which have chemical plants located across four sites in Louisiana, Texas and Pennsylvania. The plants produce chemicals for use in plastics, detergents and pharmaceuticals.

The sites include the Monaca complex in Pennsylvania, a facility in which Shell has invested USD14 billion. It started production in 2022 and has an output of around 1.6 million tonnes of polymers a year.

The sources said that interested parties submitted non-binding indicative offers for the assets in July, with the approaches including proposed acquisitions both of the whole business, and of parts of it.

Exxon closed down 2.1%, Shell lost 0.8% in New York and LyondellBasell shed 4.1%.

SpaceX and the state of Louisiana on Tuesday announced plans to develop a high-cadence spaceport for Starship on the Louisiana Gulf Coast, designed to "dramatically" increase the rate at which Starship can launch.

The planned expansion will directly enable SpaceX's ability to launch Starship thousands of times per year, the Starbase, Texas-based space technology and artificial intelligence company said in a statement.

The site will include 10 Starship launch pads, deep-water shipping capabilities, vehicle processing facilities, and an airport. Additionally, the location in southern Louisiana comes with access to abundant natural gas, which SpaceX will use for the site's power stations and to liquify onsite into the liquid methane that fuels Starship.

SpaceX ended up 2.2%.

Accenture said on Tuesday it has agreed to acquire McCoy, a system applications and products in data processing consultant, for an undisclosed sum.

Eindhoven, Netherlands-based firm will become part of Accenture Edge, a recently launched solution to support companies in the mid-market business in adopting AI and modernising their operations.

Accenture ended down 0.2%.

Wednesday's corporate calendar has half year results from CrowdStrike, Nvidia and Salesforce and a third quarter print from Agilent Technologies.

The global economic calendar has US quarterly personal consumption expenditures, GDP and durable goods orders.

By Aidan Lane, Alliance News reporter

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