U.S. stocks spent Tuesday morning drifting around the flatline, with the S&P 500 hovering just below the record high it touched at Monday's close. The market's mood was a mix of cautious optimism and rate jitters, as diplomatic signals from the Persian Gulf took some heat out of crude's rebound and pulled Treasury yields back from multi-decade highs.
President Donald Trump hardened Washington's negotiating stance in a Truth Social post, demanding Tehran pay for war damages. But Pakistani and Qatari officials offered a more constructive read, flagging progress toward an agreement that would restore oil flows through the Strait of Hormuz. The mixed signals left traders parsing headlines for direction.
WTI crude still added 1.4% to $83.29 a barrel, extending a weekly advance of 9.9% and leaving the U.S. benchmark up 45% year-to-date. Brent crude rose 1.3% to $88.84, up 11.8% over the past week. Energy stocks rode the wave, with the sector leading gains.
Treasuries caught a bid. The 10-year yield eased to 4.69%, down two basis points after clearing 4.71% on Monday, while the policy-sensitive 2-year slipped to 4.24% and the 30-year held at 5.24%. Lower yields gave a boost to rate-sensitive areas like homebuilders and small caps.
Rate expectations remain the swing factor. Traders are pricing roughly a 51% probability of a 25-basis-point hike at the September meeting, up from 44% a day earlier, after Cleveland Fed President Beth Hammack said multiple increases may be needed to return inflation to 2%. That hawkish tone has markets on edge ahead of Wednesday's consumer price report, which is forecast to show headline inflation cooling to 3.4% from 3.5%, with core at 2.5%.
Across U.S. equity markets by midday Tuesday, moves were narrow and rotational rather than directional, with small caps the clear standout. The S&P 500 slipped 0.1% to 7,745, holding within a whisker of its 7,793.68 record. The Dow Jones Industrial Average shed 51 points, or 0.1%, to 53,940. The Nasdaq 100 lagged, down 0.4% to 29,500, while the Russell 2000 outperformed, rising 0.5% to 3,030.
Gold — tracked by the SPDR Gold Shares (GLD) — gave back a fraction of a powerful run, slipping 0.3% to $4,380.31 an ounce.
Tuesday's Performance In Major US Indices
| Index | Last | % Change | YTD |
|---|
| S&P 500 | 7,744.99 | -0.1% | +13.1% |
| Dow Jones | 53,940.69 | -0.1% | +12.2% |
| Nasdaq 100 | 29,500.13 | -0.4% | +16.9% |
| Russell 2000 | 3,030.96 | +0.5% | +21.0% |
Updated by 12:20 p.m. ET
According to market data:
- The Vanguard S&P 500 ETF (VOO) slipped 0.1%.
- The SPDR Dow Jones Industrial Average ETF Trust (DIA) eased 0.1%.
- The Invesco QQQ Trust (QQQ) fell 0.4%.
- The iShares Russell 2000 ETF (IWM) rose 0.5%.
Energy and Homebuilders Lead as Software Slides
The Energy Select Sector SPDR Fund (XLE) led all sectors with a 1.3% gain as crude firmed. The Industrials Select Sector SPDR Fund (XLI) and the Utilities Select Sector SPDR Fund (XLU) each rose 0.7%.
The Consumer Staples Select Sector SPDR Fund (XLP) was the weakest sector, down 0.4%, followed by the Real Estate Select Sector SPDR Fund (XLRE) at down 0.3% and the Health Care Select Sector SPDR Fund (XLV) at down 0.2%.
At the industry level, the iShares U.S. Home Construction ETF (ITB) topped the board with a 2% gain as yields backed off, followed by the Invesco Solar ETF (TAN), up 1.8%, and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), up 1.5%.
Software was the standout loser, with the iShares Expanded Tech-Software Sector ETF (IGV) down 0.8%.
NIQ Global Intelligence PLC (NIQ) was the session's standout, surging 38.6% after a broad second-quarter beat. Adjusted EPS of 27 cents topped the 21-cent consensus, revenue of $1.12 billion edged past $1.11 billion estimates; adjusted EBITDA rose 21.9% to roughly $262 million and management lifted full-year adjusted EPS guidance to $1.08-$1.12, a midpoint roughly 12% above prior Street forecasts.
Fermi Inc. (FRMI) jumped 21.8% after confirming a $6.5 billion binding lease at its Project Matador site with TensorWave subsidiary TensorWave TEX1, covering a data center supported by 222 megawatts of power. Fermi reports second-quarter results Thursday.
Aramark (ARMK) climbed 10% after fiscal third-quarter GAAP EPS rose 34% to 36 cents and the company raised its full-year organic revenue growth outlook to 9%-10%, up from the high end of a prior 7%-9% range, citing the start of operations with a top global hyperscaler as it scales premium hospitality services.
Freshpet Inc. (FRPT) added 7.1% with no fresh company-specific news in the tape Tuesday, extending gains built on its second-quarter report earlier this month, when net sales rose 15.5% to $305.6 million against $292.3 million consensus and EPS of 39 cents beat the 22-cent estimate.
KKR & Co. Inc. (KKR) rose 6.1%, with the move tracking a broader bid in alternative asset managers.
On the downside, On Holding AG (ONON) tumbled 19.2% after second-quarter revenue of 850.3 million Swiss francs ($1,048,457,313.20) missed the CHF881.4 million consensus, overshadowing a 2-centime EPS beat at CHF0.31. Full-year sales guidance of CHF3.47-3.56 billion straddled the CHF3.56 billion consensus, though On did lift its gross margin target to at least 65%.
Amer Sports Inc. (AS) fell 5.7%, as the read-across from On's guidance rippled through athletic footwear and apparel.
AECOM (ACM) dropped 7.5% after posting a fiscal third-quarter loss of 50 cents per share against expectations for a $1.51 profit, driven by a $337 million pre-tax charge tied to higher projected completion costs on a construction management contract signed in 2019. The company slashed fiscal 2026 EPS guidance to $3.95-$4.15, far below the $5.97 consensus.
Amentum Holdings Inc. (AMTM) slid 5.6% as fiscal third-quarter revenue of $3.49 billion undershot the $3.57 billion consensus, offsetting adjusted EPS of 67 cents that beat the 61-cent estimate.
Almonty Industries Inc. (ALM) fell 5.7% on no confirmed news catalyst, giving back a slice of the run that followed the start of production at its Sangdong tungsten mine.
Intel Corp. (INTC) extended Monday's 4% slide with a further 1.5% drop after raising its expected stock sale by $5 billion to $20 billion.
