Stocks rose for another session on Tuesday as investors assessed moving yields and fresh data for more clues about the health of the US economy. Wall Street also waited for gains from major tech companies.
The Dow Jones Industrial Average traded 267 points higher, or 0.9%, after briefly rising more than 300 points. The S&P 500 gained 1.3% and the Nasdaq Composite rose 1.9%.
Tuesday’s moves added to the sharp rallies seen in the previous two sessions. On Monday, the Dow and S&P 500 were each up more than 1%, while the Nasdaq was up 0.9%. On Friday, the Dow rose more than 700 points.
A decline in yields contributed to recent gains. The benchmark 10-year Treasury bond yield was last down around 14 basis points to 4.094%. The 2-year Treasury yield was last down around 4 basis points to 4.458%.
Taken together, the yield and big index moves are signs that investors are “doubling down on expectations of a looser Fed,” said Cliff Hodge, chief investment officer at Cornerstone Wealth.
Hodge said Tuesday’s economic data was also a glimmer of hope for investors hoping the Federal Reserve will change course on interest rate hikes as the central bank tries to rein in inflation.
The S&P CoreLogic Case-Shiller 20-City House Price Index, released Tuesday, showed house prices in the 20 core cities surveyed fell 1.3% mom in August but were still 13.1% higher than a year ago . The consumer confidence index also fell, showing that the outlook for the economy has deteriorated after two months of improving prospects.
“The market is just starting to show signs that economic data is likely to slow down,” Hodge said. “The fallout from there might give the Fed a little more breathing room.”
In addition, traders pored over a few company reports. General Motors and UPS rose 4.3% and 1.3%, respectively, on better-than-expected earnings. Coca-Cola also reported stronger-than-expected earnings, sending the stock up more than 1%.
So far this season, companies have proven that they may be doing better than expected. FactSet data shows that through Tuesday morning, 71% of companies that reported beat analysts’ expectations for earnings per share.
Meta Platforms reports on Wednesday, followed by Amazon and Apple on Thursday. Given their sheer size and market cap, any moves are likely to propel the market.
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