US stocks opened higher on Tuesday as investors welcomed a pullback in surging oil prices, shifting focus back to the ongoing debate over the economy and interest rates. The benchmark S&P 500 (^GSPC) rose by around 0.5%, while the Nasdaq Composite (^IXIC) also advanced 0.5%, with tech megacaps starting to recoup some of the losses from previous sessions. The Dow Jones Industrial Average (^DJI) saw a modest uptick of 0.3%.
With oil prices retreating, easing Mideast tensions, stocks seem poised to extend the positive momentum seen in recent months.
Magnificent Seven Tech Stocks Rebound
Notably, several stocks from the “Magnificent Seven” group, which includes Amazon (AMZN), Apple (AAPL), and Alphabet (GOOG, GOOGL), saw slight gains. Meanwhile, Nvidia (NVDA) extended its rally as its partner Hon Hai highlighted growing demand for AI technologies.
Investors are closely watching the Federal Reserve’s next move, particularly in light of Federal Reserve Governor Adriana Kugler’s comment that upcoming economic data will drive interest rate decisions. The focus is now on Thursday’s CPI inflation report, which could provide further insights into future monetary policy.
PepsiCo Earnings Kick Off Earnings Season
Earnings season kicked off with PepsiCo (PEP) reporting a surprising drop in quarterly revenue and lowering its forecast for 2024 sales growth. Shares of the beverage and snack giant dipped in early trading.
