STORY: Stocks ended mixed Tuesday as investors kept their focus on the growth trajectory of the U.S. economy and awaited key economic data due out later this week, including minutes from the Federal Reserve's meeting last month and the June jobs report.
The Dow slipped four tenths of a percent, while the S&P 500 closed up fractionally. But the Nasdaq surged, ending one and three quarters of a percent higher.
Michael Vogelzang is chief investment officer at CAPTRUST.
"Clearly, the market is sort of looking at inflation as old news and that worried - and is worried - that the Federal Reserve will continue to tighten interest rates and financial conditions so much that we end up in a recession. So, there's a lot of debate, a lot of discussion, around whether or not we're either already in a recession or one's right around the corner. And there's sort of pros and cons, but today's market activity is very much focused on that. We see energy down a lot, which is, of course, very cyclical. We see other cyclical industries down, materials, and we see things... Actually, the Nasdaq is up, which is typically thought of to be less cyclical. [FLASH] And I think the most important question for investors to decide is to whether or not Apple and Microsoft and Facebook and Amazon and Google and so on actually provide a shelter in an economic storm. And I think, my guess is, that over time, as the economy continues to slow that we're going to see a little more demand for those stocks after they've, since they've sold off so much."
All of those Big Tech stocks surged Tuesday, as Apple, Microsoft, Amazon.com, Google-parent Alphabet and Facebook-owner Meta lifted the tech-heavy Nasdaq.
Energy stocks hit five-month lows as recession fears darkened the outlook for oil demand.
And the materials sector was at a more than year low as a slump in metal prices hit mining shares.
Finally, shares of Uber Technologies rose more than 5% after launching its ride-hailing and platform in Israel, as it continues to expand globally.