U.S. stocks moved higher Wednesday, while the dollar slipped lower against its global peers, as investors looked to a key earnings release from the tech sector after the close of trading while slowly shifting focus to Fed Chairman Jerome Powell's Jackson Hole speech later this week.
Weak manufacturing activity data in both Europe and Asia Wednesday added to upward moves for the U.S. dollar, which has been riding a recent tailwind of higher rate forecasts ahead of Powell's address to the Federal Reserve's central bank symposium in Wyoming on Friday.
Survey data from Germany showed the fastest contraction in business activity in three years over the month of August, sending the euro to an 8-month low of 1.08 against the greenback.
S&P Global published similar activity data for the U.S. just after the opening bell, with its composite reading falling 2 points, to 50.4 points, but holding just north of the level that typically separates growth from contraction.
Benchmark 2-year Treasury bond yields, which topped 5% in overnight trading, slipped to 4.954% in the wake of the U.S. PMI data and tracking gains for the dollar. Ten-year notes eased to 4.213% after hitting fresh 2007 highs of 4.35% during yesterday's trading.
The U.S. dollar index, which tracks the greenback against a basket of its global peers, was marked 0.16% lower at 103.398.
Global oil prices were hit by the softer PMI readings, with WTI crude futures for October delivery falling 65 cents to $77.74 per barrel but paring earlier losses following Energy Department data showing domestic crude stocks fell by a bigger-than-expected 6.1 million barrels
Nvidia (NVDA) -) shares were moving 2.3% higher ahead of the chipmaker's highly-anticipated second quarter earnings slated for after the closing bell as investors look to the market leader for key guidance on AI demand.
The larger focus, however, is likely to come from Nvidia's near-term sales guidance, expected in the range of $12.5 billion for the current quarter and $14 billion for the three months ending in December, which is likely to provide the benchmark for global demand in the rapidly-developing market for AI technology, much of it powered by Nvidia-designed chips.
Heading into the afternoon of the trading day on Wall Street, the S&P 500, which is down 4.4% for the month, was marked 39.5 points, or 0.9% higher while the Dow Jones Industrial Average gained 140 points. The tech-focused Nasdaq was up 195 points, supported in part by softer Treasury yields.
