The stock market in the United States gained again on Tuesday, as Wall Street looked to be regaining its footing following a difficult start to the year.
The Nasdaq Composite rose 1.41% to 15,153.45, building on a previous session’s midday recovery that ended a four-day losing run. The S&P 500 increased 0.92% to 4,713.07, while the Dow Jones Industrial Average increased 0.51% to 36,252.02. Rising interest rates have put pressure on equities, making stocks volatile to begin the year. On Tuesday, however, interest rates fell, with the 10-year Treasury yield falling below 1.75%.
“More than anything, it’s just a break from some very strong selling we’ve seen over the last few weeks, actually since the beginning of the year,” says the analyst.said Jeff Mills, chief investment officer at Bryn Mawr Trust Wealth Management.
Large-cap tech companies aided the market’s recovery. Amazon was up 2.4 % and Apple and Nvidia rose 1.7 % and 1.5 %, respectively. Other significant gainers included Illumina. It jumped 17% after the genomic sequencing business provided a revenue forecast for 2022 that was higher than expected.
On Tuesday, Federal Reserve Chair Jerome Powell spoke before a Senate committee as part of his re-confirmation hearings. Powell stated that he expects a normalized supply chain to help lessen inflation pressures in 2022. But if inflation stays high, the Fed would not be hesitant to raise rates further than forecast.
“If we need to hike interest rates further in the future, we will do so.” “We’ll utilize all of our levers to restore inflation,” Powell added. Stocks and bonds, on the other hand, rose during Powell’s testimony. This is because he did not disclose an abrupt shift in policy from what the Fed had already suggested.
The market’s actions on Tuesday come after a strong comeback on Monday afternoon, when the Nasdaq erased a 2.7 % loss to finish marginally higher and end a four-day losing run. The Nasdaq has lost around 3.1 % since the beginning of 2022, and more than 5% since its November closing high.
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