Major U.S. stock indexes displayed a mixed performance on Tuesday, as investors awaited a pivotal presidential debate and the release of crucial inflation data scheduled for Wednesday. This data is expected to influence the Federal Reserve’s upcoming decision on interest rate policy.
The S&P 500 gained 0.5% on Tuesday, partially recovering from significant losses incurred the previous week, while the Nasdaq climbed 0.8%. Conversely, the Dow Jones Industrial Average ended the day down 0.2%, weighed down by declines in the financial, industrial, and energy sectors.
Among notable individual performances, Hewlett Packard Enterprise (HPE) experienced the largest drop in the S&P 500, with its shares plummeting 8.5%. The decline followed the company’s announcement of a $1.5 billion offering of 27 million shares of mandatory convertible preferred stock, intended to finance expenses related to the acquisition of networking equipment maker Juniper Networks (JNPR).
General Motors (GM) saw its stock fall by 5.4% after Wells Fargo adjusted its price target downward. Analysts forecast a 2% decrease in vehicle production for the “Big Three” Detroit automakers in 2025 compared to 2024 levels, citing challenges related to pricing, regulations, and the shift to electric vehicles (EVs).
Aptiv (APTV), an automotive technology provider, also saw a 5.4% drop in its share price following its announcement to redeem senior notes due in 2025 and issue $2.15 billion in new debt securities with maturities extending to 2029, 2034, and 2054. The move to extend and diversify its debt led to investor concerns.
Shares of JPMorgan Chase (JPM) fell 5.2% after the bank’s chief operating officer (COO) suggested that projections for the company’s 2025 net interest income might be overly optimistic. With the Federal Reserve anticipated to initiate interest rate cuts at its next meeting, banks could face pressure on their interest income, contributing to the broader decline in financial stocks.
In contrast, Oracle (ORCL) saw a substantial 11.4% increase in its stock price, driven by strong fiscal first-quarter earnings. The company reported robust revenue growth from cloud services and a surge in demand for cloud-based AI models. Additionally, Oracle announced a new partnership with Amazon (AMZN) expected to further boost its cloud business.
Broadcom (AVGO) shares rose by 5.3% after a challenging week marked by a quarterly loss and lower-than-expected sales guidance. Analysts noted that Broadcom is well-positioned to benefit from its role as a key component supplier for Apple’s (AAPL) new mobile and wearable products, including the forthcoming iPhone 16.
Digital Realty Trust (DLR) saw its shares increase by 5.0% following the announcement of a euro-denominated note offering. The proceeds from this offering are earmarked for environmentally sustainable projects, including renewable energy, energy efficiency, and sustainable water management.
