Late buying campaign pushes stocks higher on Wall Street | app

A late surge in buying sent stocks on Wall Street higher on Tuesday, adding to the market’s recent gains after its January slump.

The S&P 500 gained 0.7%, the Dow Jones Industrial Average rose 0.8% and the Nasdaq composite gained 0.7%. Almost all of the gains came in the past hour after the market spent most of the day toggling between gains and losses.

Energy companies led the gains in the S&P 500. Banks, communications stocks and industrials also helped offset weakness in other market segments.

The stock market just had its worst month since the pandemic began nearly two years ago. Investors are nervous as they try to determine how the upcoming interest rate hikes by the Federal Reserve, intended to stifle inflation, will affect the economy and corporate earnings.

As trading remains choppy, the benchmark S&P 500 is on a three-day winning streak. Investors have mostly priced in tighter Fed policy and the central bank will likely be reasonable in its pace going forward, said Jay Hatfield, CEO of Infrastructure Capital Advisors.

“The macro has been priced in and now we’re back to earnings reality, which should be constructive,” he said.

The S&P 500 rose 30.99 points to 4,546.54. The index recovered from an early 0.7% decline. It is now 5.2% lower than the record level reached on January 3.

The Dow gained 273.38 points to 35,405.24 and the Nasdaq rose 106.12 points to 14,346.

Shares of smaller companies also outperformed the broader market. The Russell 2000 Index rose 22.29 points, or 1.1%, to 2,050.74.

Energy stocks made solid gains, led by a 6.4% rise in Exxon Mobil after the company reported surprisingly good fourth-quarter earnings as oil demand continues to improve.

Banks also gained ground as bond yields rose. The yield on the 10-year Treasury, which is used to set rates on mortgages and many other types of loans, rose to 1.80% from 1.77% on Monday evening. Bank of America rose 1.7% and Wells Fargo & Co. climbed 3.4%.

Tech stocks rebounded after falling for much of the day. The sector has been particularly sensitive to concerns about rising interest rates this year. Higher interest rates tend to make expensive growth stocks, like big tech companies, less attractive to investors. Hewlett Packard Enterprise grew 2.9%.

Utilities and companies that make home goods and personal products were among the declines. NRG Energy fell 3% and JM Smucker 1.5%.

UPS jumped 14.1% for the S&P 500’s biggest gain after the package delivery service reported results much better than analysts had expected. Rival FedEx rose 2.5%.

Investors are looking at the latest set of results, in part to see how inflation, the virus pandemic and other factors affect companies and their operations going forward.

The virus pandemic is still a lingering threat and each new variant could lead to a surge of cases that threatens businesses and consumer activity.

The economic recovery is threatened by a persistent rise in inflation which has increased costs for businesses and consumers. The big fear is that higher prices passed on to consumers will eventually cut spending and dampen economic growth.

The Federal Reserve is changing its monetary policy and plans to raise interest rates to fight rising inflation, which will affect stock prices. Ultra-low rates and other stimulus helped markets recover from the initial shock of the coronavirus pandemic and then underpinned stunning gains. Investors expect the Fed to start raising interest rates in March, but there is a lot of uncertainty about how far and how quickly the Fed will act throughout the year. .

Several major companies are on deck for profits this week. Facebook’s parent company, Meta Platforms, will release its results on Wednesday, while Amazon and Ford will release their results on Thursday.

Investors are also eagerly awaiting the Department of Labor’s jobs report for January, which will be released on Friday.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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