Wall Street Extends Rally Amidst Strong Start to the Week

US labor market

U.S. stocks continued their upward momentum on Tuesday, building on a strong start to the week.

The S&P 500 surged 1% midday, rebounding from a recent six-day losing streak. The Dow Jones Industrial Average gained 226 points, or 0.6%, by 11 a.m. Eastern time, while the Nasdaq composite soared 1.4%.

Supporting the market was a report on U.S. business activity, which, although weaker than expected, seemed to strike a balance. Treasury yields eased in response, contributing to the market’s gains.

Earnings reports also influenced trading, with companies like Danaher, Kimberly-Clark, and General Motors reporting better-than-expected profits, driving their stock prices higher. However, Nucor and MSCI experienced declines after missing forecasts.

JetBlue Airways faced a significant drop despite beating expectations for the quarter, while Sherwin Williams struggled due to weaker paint sales. Other airlines, including American Airlines, also faced losses.

The day’s highlight awaited after trading hours, as Tesla prepared to announce its first-quarter results. Expectations were high, especially given the company’s significant gains in 2023.

Amidst concerns about high stock valuations and lingering inflation worries, the Federal Reserve’s indication of maintaining higher interest rates added to market uncertainty. The report suggesting a slowdown in overall business activity provided some relief, contributing to the drop in Treasury yields.

International markets saw mixed performance, with European indexes rising and Asian stocks displaying varied trends.

Featured Image: Freepik @ wirestock

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About the author: Stephanie Bedard-Chateauneuf has over six years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, health stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.