Stocks surged across the board on Tuesday, gaining momentum after Monday’s rebound as unexpectedly weak economic data bolstered hopes for a potential Federal Reserve rate cut by the end of the summer.
What Happened: The S&P Global’s Purchasing Managers’ Index (PMI) for April indicated a significant deceleration in private sector growth—the slowest in four months—also highlighting reduced inflationary pressures from wages and services.
Market-implied probabilities for a rate cut by the Fed as early as September jumped to 72%, up from 67% on Monday, according to CME Group’s FedWatch Tool.
Meanwhile, corporate earnings have generally exceeded expectations, with investors now eagerly anticipating results from Visa Inc. (NYSE:V) and Tesla Inc. (NASDAQ:TSLA), slated for release after market close.
By midday trading in New York, the S&P 500 climbed 1.2%, setting the stage for its best performance in over a month. The Nasdaq 100 outperformed the broader market, up 1.5%, while the Dow Jones Industrial Average saw a more modest increase of 0.6%.
The iShares Russell 2000 ETF (NYSE:IWM) outperformed its large-cap counterparts, jumping 1.7% and marking its most significant gain since late March.
The dollar declined by 0.4%, and Treasury yields slightly fell. In the commodities market, gold remained steady following its sharpest drop in years on Monday, while oil prices inched 1% higher. Bitcoin edged down slightly by 0.3% to $66,640.
Tuesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day %chg |
| Russell 2000 | 2,002.50 | 1.7% |
| Nasdaq 100 | 17,463.15 | 1.5% |
| S&P 500 | 5,068.20 | 1.1% |
| Dow Jones | 38,468.74 | 0.6% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 1.2% to $505.50, the SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.6% to $384.94 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) rallied 1.5% to $425.11, according to Benzinga Pro data.
Sector-wise, the Communication Services Select Sector SPDR Fund (NYSE:XLC) outperformed, up 1.8%. The Materials Select Sector SPDR Fund (NYSE:XLB) was the major laggard, down 0.5%.
Tuesday’s Stock Movers
- Spotify Technology S.A. (NYSE:SPOT) saw its shares surge 17% following a robust earnings beat, setting the stock on course for its best single-day performance since its 2018 IPO.
- Other companies reacting to recent earnings were Globe Life Inc. (NYSE:GL), up 13%, GE Aerospace (NYSE:GE),up 7.3%, Danaher Corp. (NYSE:DHR), up 7.3%, General Motors Corp. (NYSE:GM), up 5%, Novartis AG (NYSE:NVS), up nearly 3%, PepsiCo. (NYSE:PEP), down 2.2%, United Parcel Service, Inc. (NYSE:UPS), up 2%, Xerox Holdings Corporation (NYSE:XRX), down 11%, MSCI Inc. (NYSE:MSCI), down 14%, LKQ Corp. (NASDAQ:LKQ), down 14%, Halliburton Company (NYSE:HAL), flat, and Lockheed Martin Corporation (NYSE:LMT), up 0.5%,
- Notable names reporting after the close other than Tesla Inc. and Visa, Inc. are Texas Instruments, Inc. (NASDAQ:TXN), Steel Dynamics, Inc. (NASDAQ:STLD), Seagate Technology Holdings plc (NASDAQ:STX), Mattel, Inc. (NASDAQ:MAT), Chubb Limited (NYSE:CB), Canadian National Railway Company (NYSE:CNI) and Baker Hughes Company (NASDAQ:BKR).
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