NASDAQ 100, Dow Jones and S&P 500 rise 0.3% on Tuesday as treasury yields and crude oil prices cool off

The US stock market opened in green on Tuesday ahead of key macroeconomic numbers and crucial NVIDIA earnings this week. The Dow Jones extended its winning streak for the third consecutive session, by gaining nearly 200 points or 0.3% at the open. Similarly, the S&P 500 and the NASDAQ 100 also rose over 0.3% at the open on Tuesday.

The chip stocks snapped the losing streak, as shares of NVIDIA, Micron Technologies, Intel Corporation, SanDisk Corporation and AMD soared as much as 4% on Tuesday as investors increased their bets after a brief correction in the past week.

Meanwhile, investors also cheered the cooling off US treasury yields after surging to near-term highs. The US 10Y yields cooled off to 4.66% on Tuesday, after hitting 4.74% in the last week. Similarly, the US 30Y yields also fell below 5.2% after hitting 5.3% in the previous week.

In addition to this, the crude oil prices too cooled off nearly 3% on Tuesday as the US aimed to punish Iran with harsh economic sanctions. Treasury Secretary Scott Bessent also said, countries supporting Iran through economic trade relations will also be imposed with tariffs.

The Asian markets posted a smart recovery from lower levels on Tuesday as investors increasingly bought chip stocks at lower levels. The Japanese markets closed 0.5% higher along with KOSPI (+0.6%) and Taiwan weighted at (+0.9%) all boosted by rally in the tech stocks.

In other development, the US home sales for July fell 10.7% MoM as compared to 7.6% growth in the previous month, indicating some weakness in the consumer sentiment. Similarly, the consumer confidence index for August stood at 89.4 as compared to 90.2 in the previous month and much below the forecast of 90.9, also indicating adding worries to investor confidence.