MARKET SNAPSHOT

U.S. stocks inched higher following China's effort to stimulate its economy. Treasury yields fell after U.S. consumer confidence declined more than expected in September. The dollar fell while gold set another record high as China's new measures were seen as a positive for world economies. Oil futures were higher, lifted by China's stimulus package and a tropical storm threat near the Gulf of Mexico.

MARKET WRAPS

EQUITIES

U.S. stocks climbed to new records after China's central bank unveiled a raft of measures to support the country's weakening economy.

The S&P 500 eked out a 0.3% gain and reached another all-time high. The Dow Jones Industrial Average added 0.2%, also setting another all-time high, while the Nasdaq Composite rose 0.6%.

The steps taken by the People's Bank of China rippled through global markets, boosting shares of European luxury goods makers, lifting commodity prices and fueling gains in U.S.-listed stocks of Chinese companies such as Alibaba. Meanwhile, gains in stocks were undercut by disappointing U.S economic data, as the Conference Board said that its index of consumer confidence fell to 98.7 in September from 105.6 in August.

In Asian trading, Chinese shares closed higher amid positive sentiment after Beijing released one of its most aggressive economic stimulus packages since the pandemic.

The benchmark Shanghai Composite Index closed 4.2% higher -- its biggest daily gain since July 2020. The Shenzhen Composite Index rose 3.95%, while the ChiNext Price Index gained 5.5%. Hong Kong's Hang Seng Index rose 4.1% as investors cheered China's slew of new stimulus measures.

Japan's Nikkei Stock Average closed 0.6% higher, tracking Wall Street's advance overnight.

Australia's S&P/ASX 200 closed 0.1% lower as the country's central bank held interest rates, as expected. Financial stocks were the largest drag. Rallying lithium and iron-ore miners helped the materials sector pare the overall losses with a 2.4% rise.

New Zealand's NZX-50 closed 0.8% lower amid weakness in real-estate, aged-care and financial stocks.

COMMODITIES

Oil futures rose for the first time in three sessions as stimulus measures unveiled by the Chinese central bank helped ease some concerns about demand.

West Texas Intermediate crude for October delivery settled up 1.7% at $71.56 a barrel while Brent also rose 1.7%, to $75.17 a barrel.

"The effort is expected to reinvigorate Chinese consumer sentiment, however, there is skepticism by many analysts that this may not boost internal demand enough to boost crude prices, but instead provide a stronger floor for oil," said Alex Hodes, of StoneX. Also supporting prices was tropical storm Helene, which is projected to reach the northeastern U.S. Gulf coast as a major hurricane late Thursday.

Front-month Comex September gold gained 0.9% to $2651.20 -- another record high.

TODAY'S TOP HEADLINES

Consumer confidence plunges on weaker job market and high cost of living. Americans are anxious ahead of election.

The numbers: Consumer confidence fell in September to a three-month low ahead of a pivotal U.S. election whose outcome could hinge on which presidential candidate voters think will do a better job on the economy.

Americans were more worried about the job market in light of a steady rise in unemployment and greater difficulty in finding work. A high cost of living after several years of severe inflation was another source of distress.

The index of consumer confidence sank to 98.7 this month from a revised 105.6 in August, the Conference Board said Tuesday. It was the biggest one-month decline since mid-2021.

Home prices grew at the slowest pace in 8 months, Case Shiller says, but still inch up to new record high

The numbers: Home prices in the 20 biggest U.S. metro areas set yet another record high in July, but the pace of price rises has decelerated significantly as prices and mortgage rates weigh on home buyers.

The S&P CoreLogic Case-Shiller 20-city house-price index rose 0.3% in July compared to the previous month.

Home prices in the 20 major U.S. metro markets were up 5.9% in the last 12 months ending in July.

Fed's Bowman says inflation remains a concern despite recent progress

Inflation remains more of a concern than potential weakness in the labor market, Federal Reserve Gov. Michelle Bowman said Tuesday.

"In my view, the upside risks to inflation remain prominent," Bowman said in a speech at a meeting of the Kentucky Bankers Association.

Bowman dissented from the Fed's aggressive half percentage point interest rate cut last week. She preferred a smaller quarter-point reduction. She was the first Fed governor to dissent from a FOMC decision since 2005.

Bank of Canada Gov. Macklem Says Growth Needs to Accelerate to Maintain 2% Inflation

OTTAWA-Bank of Canada officials want growth to accelerate and absorb the sizable amount of spare capacity in the economy, Gov. Tiff Macklem said Tuesday, arguing this is a requisite to keep inflation at or near its current 2% level.

Recent indicators suggest growth won't be as strong as the central bank forecast, Macklem said. He said the pace and timing of further rate cuts-which he reiterated are expected given slowing inflation-would depend on incoming data.

"We want to keep inflation close to the center of the 1%-3% inflation-control band," Macklem said at an event organized by the Institute of International Finance and the Canadian Bankers Association. "Economic growth picked up in the first half of this year, and we want to see it strengthen further so that inflation stays close to the 2% target."

Justice Department Sues Visa, Alleges Illegal Monopoly in Debit-Card Payments

The Justice Department on Tuesday sued Visa for antitrust violations, alleging the company used illegal tactics to maintain a monopoly in debit-card payments.

The lawsuit says Visa used carrots and sticks to keep potential competitors off its turf and to punish merchants that did business with rivals. Visa, which operates the largest card network in the U.S., sits at the center of many consumers' daily payments by providing the infrastructure that debit- and credit-card payments run on. The case comes as consumers move further away from cash in favor of card payments.

The complaint, filed in Manhattan federal court, alleges that Visa has monopolized the debit-card market since 2012.