Stocks rose for another session on Tuesday, as investors evaluated falling yields and new data for more clues to the health of the US economy. Wall Street is also waiting for dividends from major technology companies.
The Dow Jones Industrial Average was trading up 272 points, or 0.9%, after hitting more than 300 points several times during the day. The S&P 500 advanced 1.3%, and the Nasdaq Composite increased 1.9%.
Tuesday’s moves added to the sharp rises seen in the previous two sessions. On Monday, the Dow and S&P 500 rose more than 1% each, while the Nasdaq advanced 0.9%. On Friday, the Dow rose more than 700 points.
a decrease in yield Contributed to recent gains. The yield on the benchmark 10-year Treasury was down about 12 basis points at 4.108%. The 2-year Treasury yield was finally down 3 basis points at 4.468%.
Taken together, the yield and key index moves are signs that investors are “doubling up on expectations with Fed easing,” said Cliff Hodge, chief investment officer at Cornerstone Wealth.
Hodge said Tuesday’s economic data is also a point of hope for investors looking to change course on raising interest rates as the central bank tries to bring down inflation.
The S&P CoreLogic Case-Shiller 20-City House Price Index released on Tuesday showed Home prices have fallen 1.3% in the 20 core cities studied month after month in August, but it’s still 13.1% higher than it was a year ago. Consumer Confidence Index fell tooindicating that the outlook for the economy has soured after two months of improved forecasts.
“The market is just starting to get some indication that the economic data moving forward is likely to slow,” Hodge said. “The spillovers from there, perhaps, give the Fed a little more room to breathe.”
On top of that, traders were dictating a lot of company reports. Shares of General Motors and Coca-Cola rose 1.4% and 2.5%, respectively, after reporting stronger-than-expected earnings. Xerox fell 14.5% after earnings per share came in less than half of what was expected.
So far this season, companies have proven that they may be doing better than expected. FactSet data shows that as of Tuesday morning, 71% of companies reporting beat analyst expectations for earnings per share.
Meta Platforms reports on Wednesday, followed by Amazon and Apple on Thursday. Due to its sheer size and market capitalization, any moves are likely to drive the market forward.
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