Market sentiment remained upbeat on Tuesday as investors delved into a flood of quarterly earnings reports, driving stocks to extend their recent climb.
Leaders in the banking industry, including Bank of America Corporation (NYSE: BAC) and Morgan Stanley (NYSE: MS), were among the companies delivering their earnings reports.
The tech titans propelling this year’s market rally, Netflix, Inc. (NASDAQ: NFLX), and Tesla, Inc. (NASDAQ: TSLA), are set to release their second-quarter results on Wednesday, further heating up the earnings season.
A somewhat calmer economic calendar will showcase retail sales data for June, a fresh perspective on housing starts, and the homebuilder sentiment index.
Last week, the US economy exhibited robust health as key performance indicators pointed towards promising trends. Inflation data showed the slowest increase since March 2021, while consumer sentiment surged to its highest level in almost two years.
These positive developments, together with robust earnings from JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), and Delta Air Lines, Inc. (NYSE:DAL), fueled the stock market rally.
The Nasdaq Composite Index, heavily weighted towards tech stocks, experienced its best week since March, soaring by over 3.3%.
The Dow Jones Industrial Average led the charge, surging more than 350 points, which translates to an increase of over 1%. Meanwhile, the tech-rich Nasdaq made an impressive recovery from early losses, ending the day up by approximately 0.75%. The S&P 500 also performed well, gaining about 0.71%.
Bank of America shares appreciated by over 4% following a significant jump in second-quarter profits. Similarly, Morgan Stanley shares rallied, climbing over 6% in the aftermath of their positive earnings reports.
June’s retail sales figures were up, but fell short of expectations, refocusing attention on the health of the economy. Investors are now reevaluating the risk of recession versus the potential for a soft landing following the Federal Reserve’s series of interest rate hikes.
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Author Kristen Moran 
