Stocks rose on Tuesday as Wall Street assessed the latest batch of corporate earnings and the timeline for rate cuts from the Federal Reserve.
The S&P 500 rose 0.23% to settle at 4,954.23, while the Nasdaq Composite inched up 0.07% to close at 15,609.00. The Dow Jones Industrial Average jumped 141.24 points, or 0.37%, to end at 38,521.36.
“The market is trying to make heads and tails out of Powell’s statement” and the latest earnings, said Adam Sarhan, CEO of 50 Park Investment, referring to recent comments from Fed Chair Jerome Powell that dashed hopes for a March cut.
Palantir Technologies surged nearly 31% after the company posted a revenue beat in the fourth quarter, while Spotify Technology gained nearly 4% after topping expectations and posting an increase in Premium subscribers.
Expectations for fast-approaching cuts, combined with strong earnings from the technology behemoths, have contributed to the market’s push higher in recent weeks. However, recent remarks from Federal Reserve Chair Jerome Powell dashed hopes for a March rate cut and indicated that cuts may come much later than previously expected.
Narrow market leadership in recent sessions has also heightened concerns over whether the market can sustain the rally without broader participation.
“We’re on the precipice of some real volatility in the marketplace, and the last two days are very indicative of what’s to come here for at least the next six to eight weeks,” said Philip Blancato, CEO of Ladenburg Thalmann Asset Management.
Tuesday marks around the halfway point of the earnings season, with reports from Amgen, Chipotle Mexican Grill and Ford after the bell. — CNBC
