Nasdaq flips up as investors lift tech, set aside Russia-Ukraine tensions; Dow, S&P mixed

Major stock averages were mixed and off session lows Tuesday, with strength in technology stocks helping to offset pressure from geopolitical concerns triggered by developments in the ongoing war between Russia and Ukraine.

Equity indexes fell early Tuesday after Russian President Vladimir Putin on Tuesday updated Moscow’s doctrine on nuclear weapons, saying it could consider using such weapons in response to “aggression” supported by a nuclear power.

But the tech-concentrated Nasdaq Composite (COMP:IND) eventually turned higher, rising +0.4%, and the S&P 500 (SP500) flipped up +0.2%. The Dow (DJI) -0.3%, paring its loss. The Information Technology sector +0.5%, leading three other S&P 500 (SP500) higher, while seven other groups lost ground.

Haven assets such as Treasuries, gold and the Japanese yen were bid higher in the face of escalating tensions between Russia and Ukraine, but those prices also trimmed gains.

Putin’s change “is a direct threat following the Biden administration’s decision to allow Ukraine to use U.S. long-range missiles to strike inside Russia’s borders,” David Morrison, senior market analyst at Trade Nation, said. “This is not the first time that investors have had to consider a nuclear threat from Russia. But this is the most serious one to date.”

The benchmark U.S. 10-year Treasury yield (US10Y) fell 3 basis points to 4.38%, as traders moved into the safety of bonds. The shorter-end, more rate-sensitive 2-year yield (US2Y) was down 2 basis points to 4.26%.

For more, see how Treasury yields have done across the curve on the Seeking Alpha bond page.

The Japanese yen (JPY:USD)(USD:JPY), widely seen as a safe haven during times of stress, was +0.1% to the U.S. dollar. Gold, was +0.5%.

In tech Tuesday, Nvidia (NVDA) +3% ahead of the release of the AI chipmakers quarterly results, due late Wednesday. The world’s largest publicly listed company has continuously delivered blowout numbers since the artificial intelligence boom amid soaring demand for its chips that can power complex AI processes.

“After an exhausting election cycle, options show that NVDA results will be the most important catalyst left for the remainder of the year, notable, more so than NFP, CPI, and FOMC,” Stefano Pascale, equity derivatives strategist at Barclays, said in a note Tuesday. “This rhymes with the fact that never in history have investors worried more about equities at the single stock level rather than collectively.”

Meanwhile, Super Micro Computer (SMCI) +31% after the AI server company appointed BDO as its new independent auditor and submitted a compliance plan to Nasdaq to address listing requirements.

Walmart (WMT) +3.9%, grabbing some of the spotlight Tuesday after the retail behemoth topped quarterly U.S. comparable sales estimates and raised its annual net sales and adjusted profit guidance.

Tuesday’s economic calendar was light, with U.S. housing starts and building permits slumping in October.

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