Dow Buoyed by Bank Earnings as Industrial Averages Rise Again

Market Overview

U.S. stocks ended higher on Tuesday, with the Dow Jones Industrial Average rising more than 100 points after strong earnings from big banks and hopes for a less aggressive Federal Reserve. The S&P 500 and Nasdaq Composite also both closed in positive territory.

The Dow Jones Industrial Average rose 122.95 points, or 0.39%, to close at 31,831.68. The S&P 500 gained 0.95% to end at 3,972.99, while the Nasdaq Composite added 1.35% to close at 11,422.99. The Dow's advance was led by strong earnings from JPMorgan Chase and Bank of America. JPMorgan Chase reported a better-than-expected profit of $3.57 per share, while Bank of America reported earnings of $1.19 per share, also beating estimates.

Sector Performance

All 11 sectors of the S&P 500 finished in positive territory, with financials and technology leading the way. Financials rose 1.4%, while technology gained 1.3%. Energy was the only sector to finish lower, falling 0.2%.

Bank Earnings Boost Financials

Bank stocks were among the biggest gainers on Tuesday, as investors cheered strong earnings reports from JPMorgan Chase and Bank of America. JPMorgan Chase rose 2.5%, while Bank of America gained 1.9%. Other banks also rose, including Citigroup, Goldman Sachs, and Wells Fargo.

Technology Stocks Advance

Technology stocks also advanced on Tuesday, led by gains in Apple and Microsoft. Apple rose 1.5%, while Microsoft gained 1.3%. Other technology stocks that rose included Amazon, Alphabet, and Nvidia.

Fed Policy Hopes Support Market

Investor sentiment was also boosted by hopes that the Federal Reserve will be less aggressive in raising interest rates going forward. The Fed is expected to raise rates by 25 basis points at its next meeting in March, but investors are hoping that the Fed will pause rate hikes later this year as inflation cools.