Dow closes nearly 400 points higher as Wall Street bets on easing inflation, smaller rate hikes into year end; European markets close at 3-month high; oil and gas stocks gain 4.7%
Stocks rose Tuesday as Wall Street looked past tightening Covid policies in China to instead focus on a host of strong earnings reports and the potential for smaller future rate hikes during a holiday-shortened trading week.
The Dow Jones Industrial Average closed 397.82 points, or 1.18%, higher at 34,098.10. The S&P 500 rose 1.36% to close at 4,003.58, its first close above the 4,000 level since September. The Nasdaq Composite also gained 1.36% to 11,174.41.
Mixed earnings results led to a few big stock moves. Best Buy popped about 12.8% after the electronics retailer hiked its 2023 fiscal outlook and beat earnings expectations, while Abercrombie & Fitch and American Eagle Outfitters rose 21.4% and nearly 18.2% respectively on their own earnings beats.
The pan-European Stoxx 600 closed 0.8% higher provisionally, at its highest level for three months. Oil and gas stocks jumped 4.7% after Saudi Arabia denied a report that OPEC+ may boost oil output. Mining stocks rose 2.7%.
Scottish oil and gas firm Harbour Energy, Monday’s worst-performing stock, pared its losses to climb 7%, as energy industry pipe manufacturer Tenaris, Spanish energy firm Repsol and the U.K.’s BP all rose 6.5%. Energy giants Shell and Totalenergies both added around 5%.
Source: CNBC, Investing.com