- The recent stock market rally stalled as investors await Big Tech earnings to come out this week.
- Alphabet and Microsoft are scheduled to report after Tuesday's closing bell.
Equities were mixed on Tuesday as investors prepare for fourth quarter earnings results from some of world's most valuable companies.
Microsoft and Alphabet will report after the closing bell, giving traders a better understanding of how sustainable the recent market rally is. The firms belong to the "Magnificent 7" stocks, a tech-focused cohort that has significantly outperformed the broader index.
Later in the week, Amazon, Meta, and Apple will also release earnings results, revealing how they performed in the final three months of last year.
Outside of the group, strong earnings rocketed shares in the electronics maker Sanmina by over 28%. General Motors shares climbed above 7% on estimate-beating results. UPS, Whirlpool, and JetBlue were among the companies that fell on missed projections.
Investors are also awaiting the outcome of the Federal Reserve's two-day meeting, which began on Tuesday. Markets are betting interest rates remain steady this month, Chairman Jerome Powell's press conference at 2:30 p.m. on Wednesday could provide more insight into future monetary policy.
Investors now believe there is a 54.5% chance that a rate cut will come in May, according to the CME FedWatch Tool.
"While the market may be craving interest rate cuts in the near term, the current level of higher interest rates bodes well for the long-term outlook for a balanced portfolio. We continue to advise clients to focus on their long-term investment plan and avoid knee-jerk decisions," Vanguard Chief Global Economist Joe Davis said.
Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
- S&P 500: 4,924.97, down 0.06%
- Dow Jones Industrial Average: 38,467.31, up 0.35% (+133.86 points)
- Nasdaq Composite: 15,509.90, down 0.76%
Here's what else happened today:
- Markets signal a yearlong recession, according to three-decade market vet Jon Wolfenbarger.
- Forget Nvidia: Super Micro Computers top-return AI stock.
- Politicians need to reign in spending or the US is headed for a 'death spiral,' author Nassim Taleb says.
- Ethereum could surge 70% if its own ETF is approved in May, Standard Chartered forecasts.
- A Donald Trump presidency may be an 'inflationary threat,' Macquarie says.
- World's largest hedge fund notched a record $213 billion last year thanks to tech stocks.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil rose 1.28% to $77.77 a barrel. Brent crude, the international benchmark, inched up 0.16% at $82.54 a barrel.
- Gold slumped 0.60% to $2,035 per ounce.
- The 10-year Treasury yield slid over three basis points to 4.057%.
- Bitcoin climbed 0.63% to $43,533.