Tech stocks rebound from early loss, leading market higher

NEW YORK — Stocks overcame a weak start and ended broadly higher on Tuesday, giving Wall Street’s major indexes their best day in nearly five weeks.

The S&P 500 rose 1.6%, enough to recoup nearly all of its losses from last week. The Dow Jones Industrial Average rose 1.5% and the Nasdaq 2.2%.

The last time the indices mounted a larger rally was on March 16. Stocks entered this week with two consecutive weekly losses.

Stocks have mostly struggled this year amid uncertainty about how the U.S. economy and businesses will be affected as the Federal Reserve decides to reverse low interest rate policies that have helped markets to soar in recent years.

“We’re just picking up a bit of a rebound after a tough few weeks,” said Bill Northey, chief investment officer at US Bank Wealth Management.

The S&P 500 rose 70.52 points to 4,462.21. The Dow Jones recovered from a 17-point slump and climbed 499.51 points to 34,911.20. The Nasdaq gained 287.30 points to 13,619.66.


Nearly 90% of stocks in the benchmark S&P 500 index rose. 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. Microsoft rose 1.7%.

Retailers and healthcare companies also helped lift the market. Amazon rose 3.5%. Johnson & Johnson rose 3.1% after announcing 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 2.94% from 2.85% on Monday evening. Bank of America rose 1.9%.

Shares of small companies outperformed the broader market, a sign of confidence in economic growth. The Russell 2000 rose 40.63 points, or 2%, to 2,030.77.

Energy values ​​were the only laggard. US crude oil prices fell 5.2% and natural gas prices fell 8.2%.


Wall Street is shifting its focus to the latest round of corporate bulletins as more big companies report their earnings. Signature Bank jumped 8.1% after beating analysts’ expectations.

Dental products maker Dentsply Sirona fell 13.4% after laying off its CEO without giving a reason, while posting current-quarter profit forecasts well below analysts’ estimates.

netflix fell 25% in after-hours trading after the video streaming giant announced its first loss of global subscribers in its history. Its first-quarter revenue also fell short of Wall Street estimates.

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 added to these price pressures. The International Monetary Fund on Tuesday degraded the outlook for the global economy this year and next, blaming Russia’s war in Ukraine for disrupting global trade, driving up oil prices, threatening the food supply and growing 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. Currently, investors expect rate hikes to push the benchmark interest rate into a range between 2.5% and 2.75% by the end of the year, according to the tool. FedWatch by CME Group.

“It’s going to be interesting to see how quickly they increase rates from meeting to meeting,” said Shawn Cruz, chief strategist at TD Ameritrade. “How we come to the end of the year will have a lingering effect on market uncertainty and continued volatility.”

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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Sandy A. Greer