The New York Stock Exchange continued its upward trend on Tuesday, except for the Nasdaq.
The lower-than-expected increase in the December Producer Price Index (PPI) released by the U.S. Department of Labor led to a relief rally.
The previously surging government bond yields also saw a slight decline today.
However, the Nasdaq, heavily focused on technology stocks, fell as all M7 big tech stocks declined together.
Meanwhile, quantum computing stocks, which had plummeted around 30% the previous day, surged across the board.
Nasdaq’s Five-Day Losing Streak
The market sentiment was generally positive, except for Nasdaq.
The Dow Jones Industrial Average rose 221.16 points (0.52%) to 42,518.28, marking its second consecutive day of gains.
The S&P 500, which provides a broader market overview, also climbed for the second day in a row, finishing 6.69 points (0.11%) at 5,842.91.
The Nasdaq, however, reversed course late in the session, falling 43.71 points (0.23%) to end at 19,044.39.
Easing Inflation Concerns
Easing inflation concerns provided a boost to the market.
According to the U.S. Department of Labor, the Producer Price Index (PPI) for the previous month rose by only 0.2% month over month, half the market expectation of 0.4%.
The core PPI, which excludes the volatile food and energy sectors, remained unchanged from November.
Investors quickly shifted their focus to the December Consumer Price Index (CPI), released on January 15.
Economists anticipate a 0.3% month-over-month increase.
Sam Stovall, Chief Investment Strategist at CFRA Research, told CNBC that if the CPI shows a higher-than-expected increase, it would undoubtedly be negative for the stock market, indicating that market volatility persists.
The yield on the benchmark 10-year U.S. Treasury note dipped 0.013 percentage points to 4.792%.
M7 Stocks Decline Across the Board
M7 big tech stocks declined across the board. The only stock to rise the previous day, Tesla joined the downward trend, falling $6.95 (1.72%) to close at $396.36, dropping below the $400 level within a day.
NVIDIA declined for the fifth consecutive trading day since the 7th, slipping $1.47 (1.10%) to $131.76. This is a cumulative decline of more than 11% during this period.
Apple’s stock dropped $1.12 (0.48%) to $233.28, and Microsoft’s stock fell $1.52 (0.36%) to $415.67.
Meta Platforms, which announced a 5% workforce reduction just before the market closed, saw its stock price drop below $600 for the first time since January 2, plunging $14.08 (2.31%) to $594.25.
Quantum Computing Stocks Surge
Quantum computing stocks, which had plummeted around 30% the previous day after reports that Meta CEO Mark Zuckerberg said quantum computing is still a distant prospect, surged across the board.
Rigetti rose $2.90 (47.93%) to close at $8.95, marking the largest increase.
D-Wave increased $0.90 (23.50%) to $4.73, and Quantum Computing Inc. jumped $0.91 (13.96%) to $7.43.
IonQ, a leading startup, climbed $1.65 (5.92%) to close at $29.51.
International Oil Prices Fall on Palestine Ceasefire Hopes
International oil prices fell for the first time in four trading days, influenced by expectations of a ceasefire between Israel and the Palestinian militant group Hamas.
Brent crude, the global benchmark, saw its March delivery contract decline $1.09 (1.35%) to settle at $79.92 per barrel, dropping below the $80 mark just a day after surpassing it.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark for February delivery, fell $1.32 (1.67%) to close at $77.50 per barrel, marking its first decline in four trading days since January 8.
