S&P 500, Dow End Lower As Middle East Tensions Spur Oil Rally Ahead Of Key Inflation Data — META, QCOM, BE, AMZN, AVGO In Focus

• The S&P 500 ended Tuesday 0.6% lower, while the Nasdaq 100 fell 0.1% and the Dow Jones Industrial Average fell 1.2%.
• Brent crude settled around $98 a barrel.
• HSBC hiked S&P 500’s 2026 price target, sees about 5% more upside 

U.S. stock indices fell on Tuesday after rising geopolitical tension in the Middle East pushed oil prices higher ahead of a key inflation print later this week, which could set the tone for the Federal Reserve’s September rate-setting meeting.  

The S&P 500 ended Tuesday 0.6% lower, while the Nasdaq 100 fell 0.1% and the Dow Jones Industrial Average fell 1.2%. The Russell 2000, which tracks stocks with small market capitalizations, rose about 0.5%.

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) fell 0.6%, and Invesco QQQ Trust (QQQ) ended Tuesday 0.1% lower, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was down 1.2%.

Meanwhile, the VanEck Semiconductor ETF (SMH) added 1.3%, while the iShares Semiconductor ETF (SOXX) rose 1.6%, with Intel (INTC), Broadcom (AVGO), Advanced Micro Devices (AMD) and ASML Holdings (ASML) aiding gains. The broader Vanguard Information Technology ETF (VGT) slipped 0.1%.

Retail sentiment on Stocktwits for QQQ was ‘bullish,’ ‘neutral’ for SPY, and ‘bearish’ for DIA, with ‘high’ message volumes. 

US Market Drivers

Equity markets faced downward pressure as energy costs rose. West Texas Intermediate crude gained for six consecutive sessions—marking its longest winning streak since March—following weekend military exchanges involving Washington and Tehran. Brent crude ended roughly 1% higher around $97.92 per barrel, before pushing toward $99 in extended trading.

Higher energy expenses have drawn market attention toward upcoming inflation releases later this week, which could guide the Federal Reserve’s policy decision during its September meeting. Producer and consumer price figures for August will be reported on Thursday and Friday.

Traders saw a 59% likelihood of a 25-basis-point rate hike following the September 15-16 gathering, according to CME Group’s FedWatch tool. An unexpected jump in consumer inflation would complicate efforts to pause policy tightening, keeping market participants highly focused on the incoming economic reports.

“With geopolitical tensions and oil prices on the rise, the markets may find it difficult to focus on much beyond the inflation discussion,” Chris Larkin at E*Trade from Morgan Stanley told Bloomberg. 

Alternatively, HSBC upgraded its year-end target for the broad S&P 500 index to 8,100, driven by stronger-than-expected corporate profitability and sustained technology investment.

The revised target, lifted from a previous forecast of 7,650, implies an additional 5% gain from Friday’s market close, and would place the index up around 18% for the full year, according to HSBC’s research note released on Tuesday. 

Key Trending Stocks

Meta Platforms Inc. (META): The company has launched a new personal artificial intelligence agent named Muse, aiming to transition consumer AI from simple conversational chatbots into active personal assistants. 

Advanced Micro Devices (AMD): The chipmaker projects its overall addressable market could reach as much as $3 trillion by the end of the decade. 

AT&T (T) is partnering with Amazon.com (AMZN) to bring satellite internet to business customers, combining Amazon Leo’s low-Earth-orbit satellite services with AT&T’s fiber and 5G networks.  

Bloom Energy (BE): S&P Dow Jones Indices said the fuel-cell power company will join the S&P 500.  

Qualcomm (QCOM): Amazon (AMZN) expanded its partnership with the chipmaker to develop customized silicon for AI data centers.

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