Thursday, March 28, 2024
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    HomeBusinessStocks jump for third straight day, Dow up more than 250 points

    Stocks jump for third straight day, Dow up more than 250 points

    Stocks rose for a session Tuesday, as investors assessed sliding yields and new data for further clues into the health of the U.S. economy. Wall Street also awaited for earnings from key tech companies.

    The Dow Jones Industrial Average traded 283 points higher, or 0.9%. The S&P 500 advanced 1.3%, and the Nasdaq Composite popped 2%.

    Tuesday’s moves added to the sharp rallies seen in the previous two sessions. On Monday, the Dow and S&P 500 gained more than 1% each, while the Nasdaq advanced 0.9%. On Friday, the Dow surged more than 700 points.

    A decline in yields contributed to the latest gains. The yield on the benchmark 10-year Treasury note was last down by around 15 basis points at 4.085%. The 2-year Treasury yield was last down around 7 basis points at 4.424%.

    Taken together, the yield and major index moves are signs of investors “doubling down on expectations of an easier Fed,” said Cliff Hodge, chief investment officer at Cornerstone Wealth.

    Hodge said economic data released Tuesday is also a point of hope for investors looking for the Federal Reserve to change course on interest rate hikes as the central bank tries to bat down inflation.

    The S&P CoreLogic Case-Shiller 20-City House Price Index released Tuesday showed home prices fell 1.3% in the 20 core cities studied month-over-month in August, but were still 13.1% higher than a year ago. The Consumer Confidence Index also fell, showing the view on the economy has soured after two months of the outlook improving.

    “The market is just starting to get some some indication that economic data moving forward is likely to slow,” he said. “The knock-on effects from there, perhaps, gives the Fed a bit more breathing room.”

    On top of that, traders pored over a smattering of corporate reports. General Motors and UPS rose 3.8% and 2%, respectively, on the back of better-than-expected earnings. Coca-Cola also reported stronger-than-forecast earnings, sending the stock up 1%.

    So far this season, companies have proven they may be faring better than anticipated. FactSet data shows that, through Tuesday morning, 71% of the companies that reported topped analyst expectations for earnings per share.

    Meta Platforms reports Wednesday, followed by Amazon and Apple on Thursday. Given their sheer size and market capitalization, any moves are likely to drive the market going forward.

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