
U.S. stocks rallied Tuesday as investors assessed a deluge of earnings reports for clues on how corporate America has fared against a backdrop of war in Eastern Europe and rising inflationary pressures.
The S&P 500 advanced 1.7%, on pace for its best day in a month, and the Dow Jones Industrial Average jumped nearly 400 points. The tech-heavy Nasdaq Composite extended gains to 2.1% after settling at a one-month low on Monday along with the S&P 500.
Meanwhile, Treasury yields continued their climb, with the 10-year U.S. benchmark hitting 3% for the first time in three years.
“The bond market, you could argue, is way out ahead of the Fed in a way the stock market is playing wait-and-see,” Interactive Brokers’ chief strategist Steve Sosnick told Yahoo Finance Live on Tuesday. “Maybe the stock market is actually, in this case, saying ‘I’m not going to fight the Fed,’ and the bond market in fact is.”
The International Monetary Fund (IMF) said Tuesday that the global economic recovery will “slow significantly” this year due to Russia’s invasion of Ukraine. IMF officials downgraded their forecasts for economic growth, projecting global GDP will rise 3.6% in 2022 (a downgrade from January’s projection of 4.4%) and another 3.6% in 2023 (also a downgrade from the last projection of 3.8%).
“This crisis unfolds while the global economy was on a mending path but had not yet fully recovered from the COVID-19 pandemic,” said IMF Economic Counsellor Pierre-Olivier Gourinchas.
Quarterly results from 69 companies in the S&P 500 are in the queue for investors to digest through Friday. Big names on the docket of earnings set for release this week include United Airlines (UAL), American Express (AXP) and Tesla (TSLA).
Netflix (NFLX), which is slated to report quarterly earnings after market close Tuesday, will provide investors insight into whether subscriber growth at the streaming giant has slowed amid the company’s exit from Russia and as its key North American market grows increasingly saturated.
Story continues
As of Monday (the latest available data), 53% of 34…
..