US stocks rebound on solid earnings, trade optimism
US stocks bounced back from Monday’s drubbing, reaching their highs of the day on Tuesday after headlines broke from a closed-door event with investors and Treasury Secretary Scott Bessent. In that meeting, he expressed optimism on making progress toward a trade deal with China, deeming the status quo untenable for long.
The S&P 500 gained 2.5%, the Nasdaq 100 rose 2.6%, and the Russell 2000 advanced 2.7% on the day. A whopping 494 members of the S&P 500 gained on the day, tying the highest number this year.
Every S&P 500 sector ETF rose at least 1%, with financials and consumer discretionary up more than 3%.
CoreWeave was a massive gainer, up double digits as a host of Wall Street banks initiated coverage and took a bullish stance on the recently IPO’d cloud-computing company. Amazon bounced back on the heels of reports that it was pausing data center lease talks, with AWS data center VP Kevin Miller calling this “routine capacity management” and saying there were “no fundamental changes to our expansion plans.”
Risk appetite was evident in the crypto space, with bitcoin-linked companies like Coinbase, Hut 8, Riot Platforms, and Strategy all finishing sharply higher.
Boeing rallied after the aircraft maker sold a portion of its digital aviation solutions business to private equity firm Thoma Bravo for $10.55 billion.
Verizon recovered early losses after posting larger-than-anticipated postpaid phone subscriber losses for Q1 to finish virtually flat.
An ugly spot on the tape: Northrop Grumman, which tanked after reporting underwhelming first-quarter results and slashing its full-year outlook. The defense prime was the worst performer in the S&P 500.
Kimberly-Clark also fell after the Kleenex maker reduced its full-year forecast.
Hims & Hers finished modestly lower after the US FDA issued a warning over one of its topical hair-loss treatments.
