TheS&P 500was relatively unchanged on Tuesday as investors weighed signs of progress toward reopening the Strait of Hormuz against lingering doubts that the U.S. and Iran can reach a broader resolution to the conflict.
The broad market index traded around the flatline, while theNasdaq Compositefell 0.4%. TheDow Jones Industrial Averageadded 202 points, or 0.4%.
Nvidiashares kept the S&P 500 afloat, rising more than 1%. On Monday, the company said it'spartnering with six large asset managersto mobilize more than $500 billion for artificial intelligence infrastructure.
The moves come as oil held steady amid uncertainty over the Middle East conflict.
Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S. until several conditions are met.
Iranian Foreign Minister Abbas Araghchi said Sunday there was "no possibility of restarting negotiations" as long as the U.S. continues violating the June memorandum of understanding and does not compensate Iran for those violations, according to the semi-official Tasnim News Agency.
U.S.West Texas Intermediate futureswere marginally lower at $81 a barrel. International benchmarkBrent crudewas also slightly lower at $87 a barrel.
Investors will next turn to a key batch of inflation data, with the July consumer price report due Wednesday and the producer price index out Thursday. The readings could prove particularly important aftera weak jobs reportcomplicated the Fed's outlook.
The inflation reports could put the Fed in a difficult position. Higher oil prices are renewing concerns about price pressures just as the sharp slowdown in hiring raises questions about the strength of consumer spending and the broader economy.
"I expect the CPI report to continue its downward trend which will further support the case for the Federal Reserve to hold rates steady rather than hiking them, even with last Friday's weak jobs report," said Dennis Follmer, chief investment officer at Montis Financial.
"Services inflation could continue to be a sticky problem, but that sector is not very sensitive to interest rates, so it shouldn't really damage the case for holding steady," he added.
The three major averages kicked off Tuesday's session slightly in the green.
The S&P 500 climbed 0.1% just after the opening bell, while the Nasdaq Composite advanced 0.3%. The Dow Jones Industrial Average rose 117 points, or 0.2%.
Truist Securities upgrades Best Buy
Best Buyis likely to continue gaining momentum on several market trends, including the integration of artificial intelligence into consumer electronics, according to Truist Securities.
The bank upgraded the consumer electronics retailer to buy from hold. It also hiked its price target on shares to $95 from $81, suggesting 15% upside from Monday's close.
"We think the improvement [in Best Buy] is being driven by continued replacement demand, internal changes (like appliance delivery) and emerging mini-product cycles (like AI wearables)," analyst Scot Ciccarelli said Tuesday in a note to clients.
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Small business outlook improves as hiring plans jump
Confidence among small business owners hit its highest point in nearly a year during July, boosted by strong hiring plans, the National Federation of Independent Business reported Tuesday.
The NFIB Small Business Optimism Index rose to 99.8, up 2.4 points to its best level since August 2025 and above its 52-year average of 98.0.
The labor market was the big story for the month as a seasonally adjusted net 20% of owners said they were planning on creating new jobs over the next three years. That was the highest level since October 2022 and up 9 points from June.
"Although uncertainty is currently elevated, Main Street anticipates that business conditions will continue to improve," said NFIB chief economist Bill Dunkelberg.
Nvidiashares gained more than 1% in premarket trading on Tuesday, reversing course from its nearly 3% loss in the prior trading day.
This comes after the chipmaker on Mondaypartnered with six large asset managers— namely,Apollo Global Management,Blackstone,BlackRock,Brookfield Asset Management,Goldman SachsandKKR— to mobilize more than $500 billion in third-party capital for the artificial intelligence buildout.
Intel, Riot Platforms among the key movers before the open
Check out the companies making the biggest moves premarket:
Here's the latest ahead of the opening bell on Wall Street
Hims & Hers shares drop 7% as wider profit loss clouds weight-loss drug push
Shares ofHims & Hersfell as much as 7% in early premarket trading Tuesday after the telehealth company posted a wider-than-expected second-quarter loss as it transitions to selling branded weight-loss drugs through its platform.
