NEW YORK (AP) — Stocks rose broadly in afternoon trading on Wall Street on Tuesday as tech stocks rallied from a weak start.
The S&P 500 was up 1.4% at 12:21 p.m. EST. The Dow Jones Industrial Average rose 444 points, or 1.3%, to 34,856. The tech-heavy Nasdaq posted an early loss and rose 1.9%.
Tech stocks helped propel the broad gains. The expensive valuations of many of the biggest tech companies give them more leverage to steer the broader market up or down. The apple rose 1%.
Retailers and health care companies also increased. Amazon rose 2.9%. Johnson & Johnson rose 3.5% after reporting surprisingly good earnings while increasing its dividend.
Banks have gained ground as Treasury yields rise, allowing them to charge higher interest rates on loans. The 10-year Treasury yield rose to 2.90% from 2.85% Monday night. Bank of America rose 1.8%.
Shares of small companies outperformed the broader market, a sign of confidence in economic growth. The Russell 2000 rose 2.3%.
Energy stocks lagged the broader market. US crude oil prices fell 5.4% and natural gas prices fell 10.2%.
Wall Street is shifting its focus to the latest round of corporate bulletins as more big companies report their earnings. Signature Bank jumped 7.3% after beating analysts’ expectations.
Dental products maker Dentsply Sirona fell 12.4% after laying off its CEO without giving a reason, while posting a profit forecast for the current quarter well below analysts’ estimates.
Netflix is on deck to release its results after the market closed on Tuesday. Railroad giant CSX will report results on Wednesday, along with Tesla. American Airlines and Union Pacific will release their results on Thursday.
The latest round of earnings comes as investors try to gauge how businesses and consumers are coping with rising inflation that has made everything from food to clothes and gasoline more expensive.
The conflict in Ukraine has added to these price pressures. The International Monetary Fund on Tuesday downgraded the outlook for the world economy this year and next, blaming Russia’s war in Ukraine for disrupting world trade, pushing up oil prices, threatening food supplies and to increase the uncertainty already heightened by the coronavirus and its variants.
Rising prices prompted the Federal Reserve and other central banks to raise interest rates to lessen the impact of inflation. The Fed has already announced a quarter percentage point rate hike and Wall Street expects a half percent rate hike at its next meeting.
Bond yields rose as Wall Street braces for higher interest rates. The 10-year Treasury yield is the highest since the end of 2018. Rising yields have also added pressure to an already tight housing market, with mortgage rates rising and making borrowing more expensive. Wall Street will get more details on that impact when the National Association of Realtors releases its March home sales report on Wednesday.
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