The market showed a modest uptick on Tuesday as it aimed to continue its recent rally, with a positive performance across major indices. The Dow Jones Industrial Average experienced a 0.1% increase, while the S&P 500 and Nasdaq Composite saw gains of 0.2% and 0.3% respectively, reflecting investors’ cautious optimism.
Among the top performers in the S&P 500 were Enphase Energy and Kenvue, both in the solar energy and consumer health sectors, with gains exceeding 4% for each. Communication services stocks also outperformed, with Meta Platforms witnessing a 1% rise and Alphabet shares climbing by 0.7%.
The market’s positive sentiment follows a previous session of gains, as the S&P 500 recorded a 0.45% increase, leaving it just 1.2% away from its all-time closing high achieved in January 2022. Meanwhile, the tech-heavy Nasdaq Composite registered a 0.6% gain, and the Dow Jones experienced a marginal rise.
Market momentum can be attributed to several factors. Firstly, investors were buoyed by the Federal Reserve’s indication of three potential interest rate cuts in 2024, which served as a catalyst for the recent rally. Additionally, signs of cooling inflation and a decline in Treasury yields have bolstered risk assets, fostering positive market sentiment.
Source (CNBC)