US stocks shake off Fed drama with solid gain
The S&P 500 and Nasdaq 100 rose 0.4% while the Russell 2000 outperformed with a 0.8% advance on Tuesday.
President Donald Trump’s push to oust Federal Reserve Governor Lisa Cook from her position may have upset US bonds and the dollar, but it didn’t leave any mark on the stock market.
The S&P 500 and Nasdaq 100 rose 0.4% while the Russell 2000 outperformed with a 0.8% advance on Tuesday.
Industrials were the best-performing S&P 500 sector ETF, up more than 1%, while consumer staples was at the bottom of the leaderboard.
Gains on the day were led by Eli Lilly, which popped 5.9% after the pharma giant reported encouraging trial results for its next-generation weight-loss pill, putting it on track to file for regulatory approval by the end of the year. Keurig Dr Pepper fell 6.9% as investors continued to digest the company’s recent acquisition and beverage business split-up. Elsewhere...
Boeing shares rose 3.5% as US President Trump and South Korean President Lee Jae Myung formalized a $50 billion investment from Korean Air in US aviation, including $36.2 billion for 103 Boeing jets.
Nio shares jumped 10% after JPMorgan upgraded its stock rating for the Chinese EV maker to “overweight” from “neutral” and hiked its price target to $8 — up 67% from its earlier target of $4.80.
Trump Media shares jumped 5.2% after the company announced a partnership with Crypto.com to establish a digital asset treasury aimed at building a large position in the cryptocurrency cronos.
Rocket Lab rose 1.9%, its fourth straight day of gains, as the retail favorite rides a fresh wave of investor enthusiasm for the momentum stocks that have set the pace for the market since April.
IBM advanced 1.3% and Advanced Micro Devices jumped 2% after the two companies said they were teaming up to develop “quantum-centric supercomputing.”
Brilliant Earth and Signet Jewelers shares were up 26% and 3%, respectively, after megastar Taylor Swift announced that she and Kansas City Chiefs tight end Travis Kelce had gotten engaged.
VF Corp. and Canada Goose rose 6.1% and 3%, respectively, after Baird analysts upgraded both stocks to “overweight,” citing brand refreshes, consumer buzz, and easing headwinds.
Tilray rose 4.7% amid a continued rally in pot stocks fueled by cannabis reform optimism, including a Wall Street Journal report this month saying Trump was “considering” reclassifying marijuana as a less dangerous drug.
Interactive Brokers shares were up early Tuesday before closing flat after the options trading platform was tapped to join the S&P 500, replacing Walgreens Boots Alliance. Meanwhile, Talen Energy jumped 6.5% after announcing it would take the place of Interactive Brokers in the S&P MidCap 400.
Constellation Brands fell 3.2% after Bank of America analysts downgraded the alcoholic beverage maker to “underperform” from “neutral” and slashed their price target to $150.
UnitedHealth stock dipped 1.5% near the close, following a report that the Department of Justice’s probe against the healthcare giant will expand beyond the company’s Medicare Advantage program.
