S&P 500 and Nasdaq close higher as tech leads broad market gains
Stocks rose on Tuesday, building on the strong performance from the previous session, on the back of broad market gains and solid economic data.
The S&P 500 gained 0.5% to close at 3,401.20 and the Nasdaq Composite advanced 1.2% to 11,190.32. The Dow Jones Industrial Average closed just above the flatline at 27,995.60 after rising as much as 237 points.
Microsoft jumped 1.6%. Amazon and Alphabet each rose 1.7%. Netflix gained 4.1% and Facebook closed higher by 2.4%. Tesla shares, meanwhile, popped 7.2% after surging more than 12% on Monday. Tuesday marked the second straight solid performance for Big Tech after the group’s sharp sell-off last week, which pressured the broader market.
Bank earnings will show why the economy needs more stimulus, Jim Cramer says
Wall Street continues to enjoy an upward trend on the market, but the investment community will get a better sense of the challenges that much of the economy faces when financial institutions begin reporting earnings next month, CNBC’s Jim Cramer said Tuesday.
“I believe we’ll see the beginning of the bad loans that could reverberate through the whole financial system,” the “Mad Money” host said. “This weakness doesn’t matter to Wall Street because small businesses aren’t publicly traded and we’ve got a fabulous bull market in the cashless, contactless economy.”
The bank stocks, which have lagged the market this year, were the anomaly as nearly all but a handful of stocks on the SPDR S&P Bank ETF, known as the KBE, ended the day in the red. Citigroup and JPMorgan Chase, both among the largest financial institutions by market cap, were two of the biggest losers as their share prices dropped 6.94% and 3.11%, respectively.
The drops in JPMorgan and Goldman Sachs, which fell 1.7%, hurt the 30-stock Dow.
Reference: CNBC
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