On Tuesday, US stocks traded higher with the S&P 500 experiencing a 0.1% increase, the Nasdaq Composite rising 0.2%, and the Dow Jones Industrial Average edging up 0.2%. This surge followed Monday’s market downturn caused by Fed Chair Jerome Powell’s repeated warnings of cautious policy and potential interest rate cuts. Investors have since turned their focus to earnings season in the hopes that corporate results can help stocks recover.
Spotify shares gained momentum during premarket trading after the music streamer revealed strong guidance, while Eli Lilly’s stock surged after the company exceeded 2024 profit forecasts. Ford is set to report after the market closes. At the same time, investors are anticipating whether this week’s Fed speakers will align with Powell on the trajectory of policy. Fed officials Loretta Mester and Patrick Harker are scheduled to speak on Tuesday.
The optimism in the market following Monday’s downturn indicates the impact of both corporate performance and the trajectory of Fed policy on stock gains. Investors will continue to closely watch this week’s corporate earnings and listen for potential Fed speakers who may present differing opinions on policy.