Nvidia also snapped three days of losses, gaining nearly 7% after a $430 billion rout, while other big tech names like Alphabet, Tesla and Meta Platforms, gained over 2% each.
In some after-hours action, FedEx shares surged over 14% after adjusted earnings surpassed estimates, while Rivian Automotive surged nearly 50% after Volkswagen announced that it will invest up to $5 billion in the company.
“We still think it’s too early to write off the rest of the market in favor of the large-cap tech and Nvidia especially,” Bespoke Investment Group co-founder Paul Hickey told CNBC’s “Closing Bell: Overtime” on Tuesday.
US consumer confidence eased on a more muted outlook for business conditions, the job market and incomes. Federal Reserve Governor Michelle Bowman said she sees a number of upside risks to the inflation outlook. Her colleague Lisa Cook said it will be appropriate to reduce rates “at some point,” adding that she expects inflation to improve gradually this year.
“We believe the bull market we are in isn’t going to be derailed until either we go into recession or the Fed changes interest-rate policy from potential cuts to actual hikes,” said Chris Zaccarelli at Independent Advisor Alliance. “Expect volatility between now and the end of the year, but don’t expect the bull market to end without a change in the economy or Fed posture.”
Treasury 10-year yields were little changed at 4.23%. Bitcoin topped $62,000.
Wall Street will shift its attention toward fresh inflation data on Friday with the release of May’s personal consumption expenditures price index. The Federal Reserve keeps a close eye on this metric, its preferred inflation gauge, and investors remain hopeful for the prospect of rate cuts.
(With Inputs From Agencies.)
