STORY: Wall Street’s main indexes finished higher on Tuesday, as investors shifted their focus to upcoming inflation data and the start of third-quarter earnings season.
The Dow gained three-tenths of a percent, the S&P 500 added about one percent and the Nasdaq climbed roughly one-and-a-half percent.
High-growth stocks jumped, with shares of Nvidia climbing more than 4% for their largest one-day percentage increase in a month.
Apple, Tesla and Meta Platforms also closed higher.
Despite those gains, Chris Konstantinos, managing partner and chief investment strategist at Riverfront Investment Group, said he still sees a long-awaited rotation from growth to value-oriented stocks taking shape.
“The reason that it might actually have legs this time and be for real is because the Federal Reserve is in this easing type of backdrop, where financial conditions are easier, interest rates are dropping, and a lot of the quote-un-quote value-oriented sectors – things like financials, for instance – are quite rate sensitive. And as interest rates fall, and if they can continue to fall, then this might actually be a backdrop for things like US small caps to to get a bid – things like energy stocks, financials, materials, the sort of reflationary backdrop with easy monetary policy. And you might, God forbid, you might even get a rotation in international stocks, which many global investors have been waiting for for 15 years.”
Other notable stock moves included PepsiCo, which gained about 2% after the snack maker trimmed its forecast for annual sales growth but reported adjusted earnings per share above estimates.
But U.S.-listed shares of Chinese companies slid, with Alibaba Group, JD.com and PDD Holdings all suffering losses.
