Wall Street closes higher as investors digest earnings, megacap outlook
stocks closed higher on Tuesday following positive earnings from top-tier companies and as investors were focused on quarterly results from Magnificent Seven and other megacap growth stocks.
Tesla kicked off the earnings cycle for technology heavyweights after markets closed on Tuesday, announcing the launch of new electric vehicle models and quarterly revenue that missed analyst estimates. Its shares jumped 6% in extended hours trading.
That will be followed by results from other tech majors, including Microsoft, Alphabet, and Meta Platforms, later this week.
Markets were also buoyed by upbeat earnings from companies such as General Motors, which closed up 4.4% after the automaker's better-than-expected quarterly results.
Ten out of 11 S&P 500 sectors were advancing led by gains in equities in communication services and technology sectors. The S&P Materials sector ended lower dragged by steelmaker Nucor Corp, which lost ground by 8.9% after a first-quarter earnings miss. «We're having a continuation of an oversold balance that started yesterday and the catalyst today is that markets are now refocused on earnings reports across a wide array of sectors that were strong,» said Keith Lerner, co-chief investment officer at Truist Advisory Services in Atlanta.
The Dow Jones Industrial Average rose 263.71 points, or 0.69%, to 38,503.69, the S&P 500 gained 59.95 points, or 1.20%, to 5,070.55 and the Nasdaq Composite gained 245.34 points, or 1.59%, to 15,696.64.
Data on Tuesday showed that U.S. business activity
