By Yasin Ebrahim
Investing.com -- The S&P 500 climbed Tuesday, led by a rebound in tech as investors looked ahead to an inflation report due Wednesday expected to show slowing price pressures.
Tech rallied as dip-buying action returned, underpinned by a fall in Treasury yields.
Microsoft (NASDAQ: MSFT ) and Alphabet (NASDAQ: GOOGL ) led the gains in big tech, both rising more than 1%. Facebook (NASDAQ: FB ), Amazon (NASDAQ: AMZN ), and Apple (NASDAQ: AAPL ) were above the flatline.
The 10-year Treasury yield fell further below 3%, a day ahead of fresh U.S. inflation data expected to show slowing price pressures that could bolster investor sentiment stocks.
“Investors are looking for signs of a potential ‘peak’ in the inflationary pressures we have encountered over the last several months- and if they get a hint of anything close, the markets could be set to stage a strong rally in our view,” Janney Montgomery Scott said in a note.
Peloton Interactive (NASDAQ: PTON ), meanwhile, cut some losses to trade 6% lower as the connected equipment fitness company delivered guidance that fell short of estimates after reporting a wider loss than expected in the third quarter. The stock had been down more than 20% intraday.
“Our Q4 outlook reflects softer demand vs. our February forecast,” Peloton said, adding that its subscription price hike had led to an increase in cancellations, but the impact was expected to be “modest.”
AMC Entertainment Inc (NYSE: AMC ) fell more than 3% lower after the movie chain operator reported quarterly results that beat on both the top and bottom lines as box office hits including “The Batman,” spurred a return to the big screen for moviegoers.
Health care stocks were boosted by a 4% jump in Biogen (NASDAQ: BIIB ) after the drugmaker made further progress toward the potential approval of its proposed Alzheimer's disease drug lecanemab.
Biogen and Eisai submitted a rolling drug Biologics License Application for lecanemab that could, depending on the outcome of an ongoing confirmatory late-stage clinical study, pave the way for the companies to apply for full approval of the drug later this year.
Energy stocks shrugged off a decline in oil prices as intensifying lockdown measures in Shanghai continued to stoke fears about demand. “[T]he strict zero-Covid strategy in China is putting the brakes on oil demand there,” Commerzbank said in a note.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.