U.S. stocks climbed Tuesday, on track for further gains as tech-focused investors braced for a new round of profits highlighted by Tesla’s (TSLA) struggles.
The S&P 500 (^GSPC) rose about 0.5% after making a comeback from six days of losses in the previous session. The Dow Jones Industrial Average (^DJI) edged up about 0.4%, while contracts on the tech-heavy Nasdaq Composite (^IXIC) also rose 0.4%.
Indicators are looking to build on a positive start to the week that saw the S&P 500 rise above 5,000 for the first time since February. Stocks rebounded as investors turned their attention back to companies like AI darling Nvidia (NVDA), which had lost ground on concerns about higher and longer interest rates.
Many market participants are counting on Big Tech’s rush to profits this week to lift stocks out of the crisis that has plagued them since the start of the year – although some on Wall Street are less hopeful.
Tesla’s earnings are likely to be a catalyst for the S&P 500, given the stock’s weight in the index. The results, expected after the market close, are seen as crucial for Elon Musk’s electric vehicle maker, whose shares have been hit hard by disappointing delivery prospects, the cancellation of plans for a long-awaited model at less than $30,000 and a strategy shift toward robotaxis, among other headwinds.
As the first “Magnificent Seven” to report, Tesla sets the stage for highly anticipated results from Meta (META), Microsoft (MSFT) and Alphabet (GOOG) later in the week, although some suspect the momentum megacaps are running out of steam.
Meanwhile, legacy automaker GM (GM) got the earnings ball rolling on Tuesday, posting strong first-quarter results and raising its full-year guidance. Its shares jumped about 5%. Spotify (SPOT) stock jumped after the audio streamer posted a profit amid a decline in profits.
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