Nasdaq Leads Tuesday Gains as Chicago Fed Activity Data Turns Positive

Benzinga reported Tuesday that U.S. equity markets pushed broadly higher in morning trade, with the Nasdaq Composite leading the charge after the Chicago Fed National Activity Index returned to expansionary territory for April.

Tech Sector Drives the Tuesday Rally

The Nasdaq added 1.34% to reach 26,698 shortly after the opening bell. The S&P 500 climbed 0.80% to 7,533, while the Dow Jones Industrial Average moved just fractionally higher, up 0.02% to around 50,588.

The information technology sector was the day’s standout performer. Tech shares surged 2.2% on the session, driving much of the index-level gains. Consumer staples were the clear laggard, dropping 1.5% as investors rotated away from defensive positioning.

Chicago Fed Index Signals Recovering Economic Momentum

The Chicago Fed National Activity Index climbed to a reading of +0.14 in April. That reversed a revised March figure of -0.15, which had pointed to below-trend economic growth. Readings above zero indicate the national economy is expanding above its historical trend. The swing back into positive territory offers an early signal that broader economic momentum may be regaining traction heading into the second quarter.

Separately, the S&P Cotality Case-Shiller Home Price Index showed a 0.8% year-over-year increase in March, a slight step down from February’s 0.9% gain. The deceleration was modest but continued a gradual softening in home price appreciation.

Commodities and Global Markets Present a Mixed Picture

Commodity markets provided a notable counterpoint to equity strength. Oil prices slid 4.2% to $92.59 per barrel, while gold dipped marginally to $4,521.50 per ounce. Silver edged up 0.3% to $76.45 and copper added 0.1% to $6.39 per pound.

Overseas, European markets were mixed. London’s FTSE 100 gained 0.6% and Spain’s IBEX 35 added 0.1%. Germany’s DAX fell 0.5% and France’s CAC 40 slipped 0.7%. The eurozone-wide STOXX 600 declined 0.2%.

Asian markets closed in the red across the board ahead of the Wall Street session. Japan’s Nikkei 225 lost 0.25%, Hong Kong’s Hang Seng dipped 0.03%, China’s Shanghai Composite fell 0.17%, and India’s BSE Sensex dropped 0.63%.

The divergence between a strengthening U.S. tech-led rally and softness in global markets underscores a continued preference among investors for domestic growth assets. Tuesday’s data reinforced that narrative, with the activity index rebound and surging tech valuations pointing in the same direction.

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