Dow rallies points as a market comeback from the year’s lows gain steam
U.S. stocks rose sharply on Tuesday after a brutal selloff last week. Tech companies led the charge higher, while energy shares also climbed. The Nasdaq and S&P 500 both advanced more than 2%.
Those gains marked the market’s latest attempt at recovery after weeks of steep losses. Stocks are coming off a six-weeks long losing streak – its longest since 2011. Stock prices fell for seven straight weeks, making it the longest weekly decline since 2001.
A lot of people think that the stock market is overvalued because it’s been going up too much lately. But if you think about it, there are lots of reasons why stocks could go down as well as up. So when you see the market going up, it doesn’t necessarily mean that everything is great and getting better. In fact, sometimes it means that things might be getting worse.
Shares of Citigroup and Paramount increased on Tuesday after Warren Buffett’s conglomerate revealed its holdings in the two struggling banks. Citigroup stock rose 7.6%, while Paramount shares gained 3.9%. Both stocks outperformed the S&P 500, which was up 0.5%.
“Shares of Paramount Global soared 15.4% after Warren Buffett bought a big stake in the company. Meanwhile, shares of Advanced Micro Devices, Nvidia, Qualcomm and Micron Technologies also climbed. Shares of AMD jumped more than 8% after Piper Sandler upgraded the stock to buy from hold. Nvidia’s share price rose 5% after Piper Sandler raised its rating to outperform from market perform. Qualcomm’s stock price gained 4% after Piper Sandler boosted its rating to outperform. Micron Technology’ s share price increased by almost 6% after Piper Sandler upped its rating to outperform.”
Travel stocks were up after United Airlines raised its forecast for second-quarter earnings. Delta’s stock price was up after the airline reported better than expected results. American Airlines’ stock price was up after it announced better than expected results.
Home Depot shares rose after better than expected quarterly results. Meanwhile, Walmart shares fell after weaker-than-expected quarterly sales.
Walmart shares fell 11% after the retail chain reported an earnings miss because rising prices were hurting profits. The company raised its revenue outlook, but lowered its earnings forecast. Wal-Mart stock pulled back a bit from its session highs, then slightly rebounded as traders absorbed the latest comments from Fed chairman Jerome Powell.
Inflation is rising as the Fed raises interest rates. The Fed doesn’t want to move too fast or the economy could overheat.
Stocks were down sharply on Monday after a strong rally last week. Investors are worried about an economic slowdown. A recession may happen soon.
Other people thought that the stock market was going to crash. But it didn’t. Stock prices rose again after falling sharply earlier in the year.