2/2
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 21, 2022. REUTERS/Brendan McDermid
2/2
By Caroline Valetkevitch
NEW YORK (Reuters) – U.S. stocks ended higher on Tuesday, led by a sharp gain in the Nasdaq, as technology and shares of other big growth names rebounded from recent losses and Nike rose after it reported upbeat results.
Financial shares also advanced as the benchmark 10-year Treasury yield climbed to 2.36%, with the S&P 500 bank index up sharply.
The Federal Reserve raised interest rates this month, and policymakers seem to be taking a more aggressive stance toward taming inflation. While higher borrowing costs are a negative for consumers and many businesses, they help to boost the profit outlook for banks.
Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc and Alphabet (NASDAQ:GOOGL) Inc were among companies giving the biggest boosts to the S&P 500 and the Nasdaq. The S&P 500 technology index rose on the day, but remains down roughly 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 (NYSE:NKE) shares also rose after it beat quarterly profit and revenue expectations and said manufacturing issues pinching sales over the past six months were in the rear view mirror.
According to preliminary data, the S&P 500 gained 51.38 points, or 1.15%, to end at 4,512.56 points, while the Nasdaq Composite gained 270.91 points, or 1.96%, to 14,109.37. The Dow Jones Industrial Average rose 263.63 points, or 0.76%, to 34,816.62.
Tesla (NASDAQ:TSLA) Inc jumped as the electric-car maker delivered its first German-made cars to customers at its Gruenheide gigafactory.
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.
Source: Investing.com
