Stocks ripped higher for a second session on Tuesday as a strong batch of corporate earnings assuaged concerns over higher rates.
The Dow Jones Industrial Average climbed 263.71 points, or 0.69%, to close at 38,503.69. The S&P 500 gained 1.2% to finish the session at 5,070.55, while the Nasdaq Composite ticked up 1.59% to end at 15,696.64.
Spotify surged 11.4% after surpassing Wall Street’s first-quarter estimates and issuing rosy second-quarter guidance. UPS shares edged 2.4% higher after the delivery giant surpassed expectations for earnings. Shares of GE Aerospace added 8.3% after the company reported an earnings beat. PepsiCo, meanwhile, dipped 2.9% after reporting that recalls and a weaker lower-income consumer hurt demand in the U.S.
Tesla is slated to report earnings after the bell, followed by Meta Platforms on Wednesday afternoon. Google parent company Alphabet and Microsoft round out the technology-heavy earnings week on Thursday.
Roughly 20% of the S&P 500 has reported earnings through Tuesday. Of those companies, 76% have beaten analysts’ expectations, FactSet data shows.
Tuesday’s moves come after an upbeat session on Wall Street. Investors bought the dip in tech stocks after a recent sell-off in key names such as Nvidia, which had been dinged recently amid fears of higher inflation and the prospect of elevated interest rates.
“Equities have staged among the best-behaved sell-offs in 30yrs; however, as AI winners + Mag7 took the brunt of the last leg lower, disappointing earnings may accelerate losses, a risk options seem to discount,” Barclays strategist Stefano Pascale wrote.
Elsewhere, Treasury yields pulled back after U.S. manufacturing data hit a four-month low. The S&P Global Flash U.S. manufacturing PMI read 49.9, down from 51.9 in March.