US stocks rally as tech strength offsets big bank slump

The S&P 500 closed up 0.5% after a whipsaw on Tuesday. The Nasdaq 100 gained 0.9%, while the Russell 2000 remained unchanged.

Sector ETFs were mixed. A solid showing from the tech sector, up 1.5%, was the key to today’s gain in the S&P 500. The real estate sector was the biggest winner and rose 1.8%. Energy lost the most and retreated 1.7%.

A few financial stocks tumbled. JPMorgan Chase was down 5.2%, its biggest decline since April 2024, a time when stock fell 6.5% after earnings. The shares slid more than than 7% during intraday trading, as bank President Daniel Pinto said that Wall Street forecasts on how much the bank will make in net interest income next year are overly optimistic. It’s just the 12th time the stock has lost 5% on a day the S&P 500 gained in the past 44 years.

Goldman Sachs lost 4.4%. The S&P financial sector ETF decreased 1%. 

Oracle was up 11.4% and hit a record high after reporting better-than-expected results on Monday after the bell. 

WTI crude oil futures were down as much as 5% during intraday trading on Tuesday. Global benchmark Brent futures also declined, hitting their lowest levels since December 2021. In a report released on Tuesday, OPEC trimmed its forecast for oil demand in 2024 and saw slower growth in store for 2025. 

With the upcoming presidential debate on Tuesday night, politics may take center stage. Basket of stocks that stand to benefit from Republican policies (per Goldman Sachs analysts) took a lead after the first presidential debate but fell behind the Democratic policy basket after Biden announced his withdrawal from the race.