New York, NY – U.S. stocks experienced a positive uptick on Tuesday as corporate earnings season gained momentum, prompting investors to look forward to building on the previous session’s strong gains.
The Dow Jones Industrial Average rose by 255 points, or 0.6%, while the S&P 500 saw a 1.1% gain, and the Nasdaq Composite increased by 1.4%. Notable companies like Spotify surged over 14% after exceeding Wall Street’s first-quarter estimates and offering optimistic guidance for the upcoming quarter. Conversely, PepsiCo experienced a 2.4% dip despite reporting better-than-expected earnings.
As the corporate earnings reports continue to roll in, investors eagerly await updates from companies such as Tesla, Meta Platforms, Alphabet, and Microsoft throughout the week. Approximately 20% of the S&P 500 have reported their earnings as of Tuesday morning, and data from FactSet indicates that 76% of these companies have surpassed analyst expectations.
The positive market movements on Tuesday follow a session where investors capitalized on buying opportunities in the tech sector following recent declines in key tech stocks. Companies like Nvidia faced setbacks due to concerns regarding higher inflation and potential interest rate hikes.
Barclays strategist Stefano Pascale noted, “Equities have shown resilience during recent sell-offs, but the risk of disappointing earnings may lead to accelerated losses, a factor that options trading seems to be accounting for.”