Technology companies and banks led stocks higher on Wall Street Tuesday, erasing most of the market’s losses from a broad sell-off a day earlier, as reported by ABC News.
Terry on Communication Stocks
The rally, which lost some momentum in the final hour of trading, left the S&P 500 1.1% higher. Chipmaker Nvidia rose 3.6%, Microsoft gained 2%.
Communications stocks also made solid gains after losing ground the day before.
That sends a signal to traders that the index has reached “a good level of support for stocks to trade higher,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
“Today’s activity is primarily in response to the weakness we’ve experienced over the last 10 days or so,” he said.
The S&P 500 rose 45.26 points to 4,345.72. Bank of America rose 2%, Citigroup added 1.7%.
Hike in Energy Price
Energy prices continued rising.
Rising energy prices have been steadily pushing gasoline prices higher.
A gallon of gas in the U.S. is $3.20, up more than $1 from a year ago, according to AAA.
The rise in energy prices helped lift oil company shares.
Chevron rose 1.1%, Hess rose 1.6%.
Logistic Hindrance
Supply chain disruptions and delays, along with rising raw materials costs, are among the crucial problems facing companies as they try to continue recovering from the pandemic’s impact.
The lingering pandemic and global supply chain problems prompted the International Monetary Fund to trim its forecast for global growth this year.
Still, Wall Street is expecting solid corporate profit growth when the third-quarter earnings season kicks off later this month.
S&P 500 companies are projected to post a 27.7% increase in earnings for the July-September quarter versus a year earlier, according to FactSet.
Sandven on Stocks and Shares
“We’re now on the doorstep of third-quarter releases, which in our view will show earnings are growing, and that’s a basis for stocks to trend higher,” Sandven said.
Facebook rose 2.1%.
The stock fell nearly 5% on Monday as the company suffered a worldwide outage and faced political fallout after a former employee told “60 Minutes” that the company has consistently chosen its interests over the public goodness.
Did you subscribe to our newsletter?
It’s free! Click here to subscribe!
Source: ABC News
