Stocks rebound over 1% on positive corporate news, rate cut expectations

From Nasdaq: 2024-08-06 18:13:32

US stocks rallied on Tuesday, with the S&P 500, Dow, and Nasdaq closing up over 1%. This rebound came after a sharp selloff on Monday, supported by strong corporate news. The June trade deficit narrowed slightly, but still remains a concern for Q2 GDP. Earnings for S&P 500 companies expected to rise 9% y/y.

Japanese stocks surged over 10% on Tuesday, boosting US markets. Positive corporate news from companies like Kenvue, Uber Technologies, and Molson Coors helped drive stocks higher. The market is pricing in a 100% chance of a -25 bp rate cut in the upcoming FOMC meeting. Overseas markets also settled higher.

Interest rates rose on Tuesday, with 10-year T-note yields reaching 3.882%. European government bond yields also increased. Eurozone saw a decline in retail sales, while German factory orders jumped up 3.9% m/m. There’s a 94% chance of a -25 bp rate cut by the ECB at their September meeting.

Stock movers included Kenvue, Uber Technologies, Nvidia, Baxter International, and Zoetis, all showing positive gains. However, losers like Henry Schein, Vulcan Materials, Expeditors International, Warner Bros Discovery, Intel, Sempra, and Teradata faced declines. Earnings reports are expected from companies such as CVS Health, Disney, and Warner Bros Discovery.



Read more at Nasdaq: Stocks Stabilize and Recover Some of Monday’s Slump