NEW YORK: U.S. stocks ended higher on Tuesday, led by a 2% gain in the Nasdaq, as shares of technology and other big growth names rebounded from recent losses and Nike rose after it reported upbeat results.
Financial shares also were among the day's best performers as the benchmark 10-year Treasury yield US10YT=RR climbed to 2.368%, with the S&P 500 bank index .SPXBK up 2.5%. Read full story
Every S&P 500 sector but energy .SPNY ended higher on the day. The three major indexes have gained in five of the last six sessions.
The Federal Reserve last week raised the federal funds rate by a quarter of a percentage point from the near-zero level, and Fed officials are doing little to downplay rising market expectations the U.S. central bank will raise rates by half a percentage point in May to tame inflation. Read full story
While higher borrowing costs are a negative for consumers and many businesses, they help to boost the profit outlook for banks.
Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O gave the biggest boosts to the S&P 500 and the Nasdaq. The S&P 500 technology index .SPLRCT rose 1.4% on the day, but remained down 10% for the quarter so far, among the sharpest declines of the major sectors.
With the recent lows, "you sort of really did wash out the sellers," said Jim Paulsen, chief investment strategist at the Leuthold Group in Minneapolis. "Now you're seeing even the old leadership bounce a little bit, giving people a little support that maybe the worst is over.
"Underneath all of it is that economic and earnings data have remained fairly good."
Nike Inc NKE.N shares rose 2.2% after the company beat quarterly profit and revenue expectations and said manufacturing issues pinching sales over the past six months were in the rear view mirror. Read full story
The Dow Jones Industrial Average .DJI rose 254.47 points, or 0.74%, to 34,807.46, the S&P 500 .SPX gained 50.43 points, or 1.13%, to 4,511.61 and the Nasdaq Composite .IXIC added 270.36 points, or 1.95%, to 14,108.82.
Tesla Inc TSLA.O jumped 7.9% as the electric-car maker delivered its first German-made cars to customers at its Gruenheide gigafactory. Read full story
On Monday, Fed Chair Jerome Powell said the central bank must move "expeditiously" to raise rates. When asked what would prevent the central bank from raising rates by half a percentage point at the May 3-4 policy meeting, he responded: "Nothing." Powell is slated to speak again on Wednesday.
Investors were still keeping a close eye on the Ukraine-Russia conflict, with Ukrainian officials saying the besieged port city of Mariupol is under continuous bombardment as Russian forces redouble their efforts to capture it. Read full story
Advancing issues outnumbered declining ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 2.53-to-1 ratio favored advancers.
The S&P 500 posted 36 new 52-week highs and no new lows; the Nasdaq Composite recorded 60 new highs and 37 new lows.
Volume on U.S. exchanges was 12.14 billion shares, compared with the 14.5 billion average for the full session over the last 20 trading days.- Reuters