Wall Street continued its rebound on Tuesday, with technology stocks leading the way as key quarterly reports from the “Magnificent 7” members loom on the horizon. The NASDAQ Composite and the S&P 500 both surged over 1%, while the Dow climbed 0.70%.
Investors also saw a retreat in Treasury yields as bond buying intensified, indicating strong demand for fixed-income assets. Market experts from JPMorgan noted that there may be limited room for further repricing in the front end of the yield curve.
The upcoming earnings reports from Tesla, Meta Platforms, Microsoft, and Alphabet will be crucial in determining the future of the current bull run in equities. Market participants are closely watching the performance of these tech giants.
In addition, post-earnings gains in GE Aerospace and General Motors provided a boost to the markets. GE Aerospace saw its stock hit a record high after raising its annual profit guidance, while General Motors exceeded quarterly revenue estimates and showcased strong retail deliveries for its electric vehicle portfolio.
However, not all companies saw positive results, as PepsiCo slipped despite delivering a quarterly organic revenue growth beat. The economic calendar for Tuesday also showed mixed results, with U.S. business activity increasing slightly in April, but at the softest pace since December. Fifth District manufacturing activity remained slow, while new home sales in March surpassed expectations.
Overall, Wall Street’s rebound and the upcoming earnings reports from tech giants will continue to drive market sentiment in the coming days.
