US stocks climbed on Tuesday, signaling further gains as investors geared up for a wave of tech earnings, with all eyes on Tesla’s (TSLA) performance amidst its recent struggles.
The S&P 500 (^GSPC) advanced approximately 0.5%, rebounding from losses in the previous session, while the Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) edged up by around 0.4%. This positive momentum follows a week of losses, with the S&P 500 dipping below 5,000 for the first time since February.
Investors are turning their attention to Big Tech earnings, hoping to pull the market out of its recent slump. NVIDIA (NVDA) saw a resurgence as investors returned to the AI darling amid concerns about sustained high interest rates.
Tesla’s earnings report, scheduled for after the market close, is anticipated to be a significant event for the S&P 500, given its weight in the index. The electric vehicle maker has faced challenges, including a disappointing delivery outlook, the cancellation of plans for a sub-$30,000 model, and a strategic shift towards robotaxis. Analysts see this report as pivotal for Tesla, as it navigates through headwinds.
Tesla’s earnings announcement sets the stage for a flurry of highly anticipated reports from Meta (META), Microsoft (MSFT), and Alphabet (GOOG) later in the week. However, there are concerns among some on Wall Street about the sustainability of megacap tech companies’ momentum.
Legacy automaker General Motors (GM) kicked off the earnings season with strong first-quarter results and an upward revision of its full-year guidance, leading to a 5% surge in its shares. Similarly, Spotify (SPOT) saw its stock jump after reporting a profit and beating earnings expectations.
The surge in US stocks on Tuesday reflects growing optimism as investors await a wave of tech earnings, with Tesla’s performance taking center stage amidst its recent challenges. With hopes riding high on the tech sector, the market is poised for further gains as earnings season unfolds.
