Stocks rose for another session on Tuesday, as investors assessed sliding yields and fresh data for more clues about the health of the U.S. economy. Wall Street awaited earnings from major tech companies.
The Dow Jones Industrial Average traded up 292 points, or 0.9%, after rising more than 300 points multiple times on the day. The S&P 500 advanced 1.5%, and the Nasdaq Composite rose 2.1%.
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 rose more than 700 points.
A Low yield contributed to recent gains. The yield on the benchmark 10-year Treasury note was last down 12 basis points at 4.108%. The 2-year Treasury yield fell 3 basis points to 4.468%.
Taken together, the yield and major index moves are signs that investors are “doubling down on expectations of an easy Fed,” said Cliff Hodge, chief investment officer at Cornerstone Wealth.
Hodge said Tuesday’s economic data was a point of hope for investors looking for the Federal Reserve to reverse its course of interest rate hikes as the central bank tries to curb inflation.
The S&P CoreLogic Case-Shiller 20-City House Price Index released Tuesday showed. House prices fell 1.3% of the 20 major cities were surveyed monthly in August, but that was 13.1% higher than a year ago. Consumer Confidence Index also fellTwo months later the outlook for the economy improved.
“The market is starting to get some indication that the economic data is going to slow moving forward,” Hodge said. “The knock-on effects from there, perhaps, give the central bank a little more breathing room.”
On top of that, traders saw a smattering of corporate reports. General Motors and Coca-Cola rose 1.4% and 2.5%, respectively. Xerox fell 14.5% after earnings per share came in less than half of expectations.
So far this season, companies have proven that they can perform better than expected. FactSet data showed that as of Tuesday morning, 71% of companies had topped analyst expectations for earnings per share.
Meta platforms report on Wednesday, Amazon and Apple on Thursday. Given their sheer size and market capitalization, any moves will move the market forward.
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