Stocks saw modest gains on Tuesday as investors await upcoming economic data and corporate earnings later in the week for clues about how the Federal Reserve might move interest rates in the future.
The Dow Jones Industrial Average rose 52 points, or 0.2%. The S&P 500 advanced 0.3%, while the Nasdaq Composite added 0.4%.
The S&P 500 was up 1.1% in the first five trading days of 2023 until Monday, which some say is a good omen for the rest of the year. The Nasdaq has risen in recent days as optimism about slowing inflation has led investors to rout technology stocks.
Billionaire investor Paul Tudor Jones was bullish on the stock market Tuesday morning, saying the Federal Reserve likely won’t crash the economy, and stop raising interest rates before they do. Jones, who said he doesn’t provide a specific forecast, said there’s huge demand down the road this year for the shares from share buybacks and mergers.
“You probably have excess demand for just under $1 trillion in US stocks,” Jones said Tuesday on CNBC. “Squawk Box”. “Where will the sale come from to offset those demands coming from buybacks, from items of the company’s line, from a mix of buybacks and mergers and acquisitions? 7% or 8% this year.”
Investors came into the new year worried that higher federal interest rates could tip the economy into recession. But many seem to be betting that inflation is starting to ease in the early days of 2023. Later in the week, they will be watching the upcoming CPI data on Thursday and the earnings of major banks on Friday.
“We’re likely to be in this really tight range and most likely directionless until at least Thursday we finish the CPI report and then the start of earnings season, which will also be later this week,” said Megan Hornemann, chief investment officer. Officer at Verdence Capital Advisers. “Right now, I think the market is caught in the middle of waiting for economic data and absorbing some of the Fed’s rhetoric.”
“Web aficionado. Travel guru. Zombie enthusiast. Proud music scholar. Social media buff. Internet fanatic. Writer. Pop culture expert.”
80% of workers who quit in a ‘big quit’ regret it: new survey
Shell posts nearly $40 billion in profit and announces $4 billion in buybacks
The Fed raised interest rates by a quarter point and signals more to come