04:51 PM EDT, 09/24/2024 (MT Newswires) -- The Dow Jones Industrial Average and the S&P 500 closed at record highs Tuesday as markets analyzed the latest economic data.

The Dow rose 0.2% to 42,208.2, while the S&P 500 advanced 0.3% to 5,732.9. The Nasdaq Composite increased 0.6% to 18,074.5. Materials led the gainers among sectors, while financials saw the steepest decline.

In economic news, US home prices increased in July to a 14th straight monthly record, though the pace of annual growth decelerated to the slowest level of 2024, S&P Global ( SPGI ) division S&P Dow Jones Indices said.

Separately, the Federal Housing Finance Agency said home prices edged up 0.1% on a seasonally adjusted basis in July, while June's 0.1% decrease was revised up to a flat level. The consensus was for a 0.2% rise in a survey compiled by Bloomberg.

Housing affordability in the US improved in August amid declining mortgage rates, though the typical household is still earning way less than the amount required to afford a home, Redfin (RDFN) said.

Consumer confidence in the US fell at the sharpest pace in about three years, while the annual inflation outlook edged higher, the Conference Board said.

Manufacturing activity in the US Mid-Atlantic region logged a surprise decline into deeper contraction territory this month as shipments and employment deteriorated further, according to the Richmond Fed.

The US two-year yield dropped four basis points to 3.54%, while the 10-year rate lost one basis point to 3.73%.

On Wednesday, the Federal Reserve reduced interest rates by 50 basis points. Fed Governor Michelle Bowman reiterated Tuesday that she preferred a 25-basis-point cut amid inflation concerns.

"I preferred a smaller initial cut in the policy rate while the US economy remains strong and inflation remains a concern, despite recent progress," she said in remarks at a Kentucky Bankers Association event Tuesday.

On Monday, Atlanta Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari said the Federal Open Market Committee made the right decision last week, though future policy moves are likely to be determined by incoming economic data.

West Texas Intermediate crude oil increased 1.6% to $71.46 a barrel Tuesday. "Oil's positive momentum continues as tensions in the Middle East remain elevated alongside fresh hurricane threats for the US and Mexico," ING said in a report.

Chinese e-commerce platform PDD's (PDD) US-listed shares jumped 11%, the top performer on the Nasdaq. Chip-making giant Nvidia ( NVDA ) was the second-best performer on the Nasdaq and among the top gainers on the S&P 500, up 4%.

Visa (V) shares fell 5.5%, the worst Dow performer and the second-steepest decline on the S&P 500, after the US Department of Justice filed a civil antitrust lawsuit against the company for allegedly monopolizing the debit card market.

Gold rose 1.3% to $2,688.10 per troy ounce, while silver jumped 4.7% to $32.55 per ounce.