Technology companies and banks led stocks higher on Wall Street Tuesday, more than making up the market’s losses a day earlier. Peloton jumped 25.3% after the exercise bike maker announced a corporate shake-up and big job cuts. Bond yields rose. The S&P 500 rose 37.67 points, or 0.8%, to 4,521.54. The Dow Jones Industrial Average rose 371.65 points, or 1.1%, to 35,462.78. The Nasdaq rose 178.79 points, or 1.3%, to 14,194.45. The yield on the 10-year Treasury note rose to 1.96%, its highest level since before the pandemic began. The mostly muted trading this week follows weeks of volatility amid uncertainty over how aggressive the Fed will raise interest rates to fight inflation.
Smaller company stocks outpaced the broader market in a potential sign that investors are optimistic about economic growth, the AP reports. The Russell 2000 index of smaller stocks rose 1.1%. The indexes recovered after wavering between gains and losses in the early going as bond yields surged. Banks, which benefit from higher interest rates and rising bond yields, made solid gains. Bank of America rose 1.7%. Raw materials companies, including steelmakers and paper producers, also gained ground. The price of US crude oil fell 2.1% and weighed down energy stocks. Chevron fell 1.5%.
Technology companies accounted for a big slice of the S&P 500's rally. Apple rose 1.9%. Chipmaker Nvidia rose 1.5% after shaking off an early loss following its announcement that it terminated its plan to buy chip designer Arm from Softbank. Retailers and other companies that rely on direct consumer spending also helped lift the market. Amazon.com rose 2.2% and Home Depot gained 1.2%. Investors continued reviewing the latest corporate earnings with mixed reactions. Pfizer fell 2.8% after giving Wall Street a discouraging profit and revenue forecast. Harley-Davidson jumped 15.5% after reporting a surprising fourth-quarter profit.
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