NEW YORK, N.Y. – Traders felt a boost of energy as stocks rose on Wall Street and the solid earnings helped move a mix of retailers higher ahead of the Turkey holiday in the U.S.
The S&P 500 rose 1.4% Tuesday. It’s a good day when all of the company sectors in the benchmark S&P 500 index rises. Thank technology stocks for the rally!
The Dow Jones Industrial Average added 1.2% and the Nasdaq added 1.4%.
Financial and health care stocks to include a few brand names helping lift the market Charles Schwab rose 1.6% and Pfizer added 1.9%.
Energy stocks notched the biggest gain as the price of U.S. crude oil rose 1.5%. Chevron rose 2.6%.
Long-term Treasury yields fell. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.77% from 3.84% late Monday.
“When rates go down it’s great for all stocks,” said Jay Hatfield, CEO of Infrastructure Capital Advisors.
The S&P 500 rose 53.64 points to 4,003.58. The Dow gained 397.82 points to 34,098.10. The tech-heavy Nasdaq climbed 149.90 points to 11,174.41.
Smaller company stocks also got a boost. The Russell 2000 rose 21.20 points, or 1.2%, to 1,860.44.
Nearly every company in the S&P 500 has reported their latest financial results, according to FactSet, and the results have been mixed. Companies in the index have reported overall earnings growth of about 2%, but have also issued various warnings about weaker consumer demand and crimped sales as inflation continues squeezing consumers.
Wall Street has been hoping that the central bank might ease up on its aggressive rate increases. Its benchmark rate currently stands at 3.75% to 4%, up from close to zero in March.
“In 2023, we expect less pain but also no gain,” stated a report from Goldman Sachs looking ahead to the new year.
Worries about a recession continue hanging over the global economy and markets.
The investment bank expects inflation and high interest rates to essentially flatten out corporate earnings and hold the broader stock market at its current levels, with the S&P 500 ending 2023 where it currently sits at around 4,000 points.