The U.S. stock market experienced a positive day on Tuesday, with the Nasdaq Composite leading the charge, gaining approximately 200 points. This strong performance pushed the tech-heavy index to a new high. The Dow Jones Industrial Average also rose, albeit modestly, while the S&P 500 saw a significant climb, demonstrating broad market strength.
Within the sectors, information technology shares experienced a strong surge, rising by 1.4% on the day. This suggests continued investor confidence in the technology sector’s growth potential. On the other hand, energy shares dipped by 2.6%, likely influenced by fluctuating oil prices.
Among individual stocks, Alternus Clean Energy Inc (ALCE) saw a remarkable 48% jump in its share price. This surge was attributed to the company’s successful reduction of $100 million in debt and payables, along with a $45 million improvement in shareholder equity. Another notable gainer was Bio-Path Holdings, Inc. (BPTH), whose shares soared by 36%. This rise was driven by the company’s launch of a therapeutic program aimed at developing BP1001-A for treating obesity and related metabolic diseases. This new program utilizes DNAbilize technology, marking its first application in a non-cancer field.
Cassava Sciences, Inc. (SAVA) also witnessed a positive day, with its shares climbing by 21%. The company’s announcement of a separation between CEO and board roles contributed to this increase. Analyst Vernon Bernardino of HC Wainwright & Co. further boosted sentiment by upgrading Cassava Sciences from Neutral to Buy, assigning a $116 price target.
However, not all stocks were on an upward trajectory. ZJK Industrial Co., Ltd. (ZJK) experienced a significant drop of 29% in its share price following a 35% gain the previous day. JinkoSolar Holding Co., Ltd. (JKS) also saw a decline of 20%, while Lufax Holding Ltd (LU) fell by 15%. The decline in these US-listed Chinese stocks was attributed to reports that Chinese planning officials missed investor stimulus expectations, impacting investor sentiment.
In the commodities market, oil prices traded down by 4.4%, while gold prices dipped by 0.3%. Silver prices fell by 2.2%, and copper prices decreased by 1.8%.
Across the Atlantic, European shares closed mostly lower. The eurozone’s STOXX 600 fell by 0.43%, Germany’s DAX declined by 0.08%, and France’s CAC 40 dropped by 0.70%. Spain’s IBEX 35 Index experienced a slight dip of 0.06%, while London’s FTSE 100 fell by 1.21%.
France’s trade deficit widened to €7.4 billion in August, while Germany’s industrial production rose by 2.9% month-over-month in August, indicating some economic resilience in the region.
In Asia, markets closed mostly lower on Tuesday. Japan’s Nikkei 225 fell by 1%, Hong Kong’s Hang Seng Index dipped by 9.41%, and China’s Shanghai Composite Index dropped by 4.59%. India’s BSE Sensex, however, gained 0.72%. Japan’s service sector gauge declined to 47.8 in September, and the country’s current account surplus widened to JPY 3,803.6 billion in August.
The NFIB Small Business Optimism Index rose to 91.5 in September, providing some positive sentiment regarding the health of small businesses in the U.S. However, the index fell short of market estimates. Importantly, the trade deficit in the U.S. narrowed to $70.4 billion in August, marking the lowest level in five months and a positive sign for the economy. This suggests that the U.S. is importing fewer goods, potentially indicating a strengthening domestic economy.
Overall, Tuesday’s trading session was marked by a mix of positive and negative factors. While the U.S. stock market saw solid gains, particularly in the technology sector, concerns about Chinese economic stimulus and falling commodity prices weighed on other sectors. European and Asian markets also saw mixed performance, with some economies showing signs of resilience while others faced challenges. The narrowing trade deficit in the U.S. provided some positive news for the economy, indicating potential strength in the domestic market.
