Stocks rose for the next session on Tuesday, as investors evaluated new products and data for other signs about the health of the US economy. Wall Street also awaited earnings from major technology companies.
The Dow Jones Industrial Average traded 225 points higher, or 0.7%, after briefly reaching more than 300 points. The S&P 500 advanced 1.1%, and the Nasdaq Composite rose 1.6%.
Tuesday’s moves added to the sharp rallies seen in the previous two sessions. On Monday, the Dow and S&P 500 each gained more than 1%, while the Nasdaq advanced 0.9%. On Friday, the Dow was up more than 700 points.
A shortage of products led to the latest acquisitions. The yield on the benchmark 10-year Treasury note last fell around 14 basis points to 4.094%. The 2-year Treasury yield was last down around 4 basis points to 4.458%.
Cliff Hodge, chief investment officer at Cornerstone Wealth, said, combined, the yield and major index moves are signs investors are “doubting expectations for an easier Fed.”
Hodge said the economic data released on Tuesday is also a hope for investors looking for the Federal Reserve to change course on interest rate hikes as the central bank tries to reduce inflation.
The S&P CoreLogic Case-Shiller 20-City House Price Index released Tuesday showed home prices in the 20 core cities surveyed fell 1.3 percent month-over-month in August, but still fell from a year earlier. previously they were 13.1% higher. The Consumer Confidence Index also fell, indicating that the outlook for the economy has worsened after two months of improving outlook.
“The market is just starting to get some indication that the economic data going forward may be slowing down,” Hodge said. “The knock-on effect from there might give the Fed some breathing room.”
On top of that, the traders have expressed their displeasure on several reports of the company. General Motors and UPS rose 4.3% and 1.3%, respectively, on the back of 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 it may be better than expected. FactSet data shows that, as of Tuesday morning, 71% of companies that reported exceeded analyst expectations for earnings per share.
Meta Platforms reports on Wednesday, followed by Amazon and Apple on Thursday. Because of their size and market capitalization, any move is likely to move the market forward.