S&P 500 Advances as Dip Buyers Return to Tech

By Yasin Ebrahim

© Reuters S&P 500 Advances as Dip Buyers Return to Tech

Investing.com — The S&P 500 climbed Tuesday, led by a rebound in tech as investors looked ahead to an inflation report due Wednesday expected to show slowing price pressures.

The S&P 500 rose 0.6%, the Dow Jones Industrial Average gained 0.1%, or 23 points, the Nasdaq rallied 1.6%.

Tech rallied as dip-buying action returned, underpinned by a fall in Treasury yields.

Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) led the gains in big tech, both rising more than 1%. Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) were above the flatline.

The 10-year Treasury yield fell further below 3%, a day ahead of fresh U.S. inflation data expected to show slowing price pressures that could bolster investor sentiment stocks.  

“Investors are looking for signs of a potential ‘peak’ in the inflationary pressures we have encountered over the last several months- and if they get a hint of anything close, the markets could be set to stage a strong rally in our view,” Janney Montgomery Scott said in a note.

Peloton Interactive (NASDAQ:PTON), meanwhile, cut some losses to trade 6% lower as the connected equipment fitness company delivered guidance that fell short of estimates after reporting a wider loss than expected in the third quarter. The stock had been down more than 20% intraday. 

“Our Q4 outlook reflects softer demand vs. our February forecast,” Peloton said, adding that its subscription price hike had led to an increase in cancellations, but the impact was expected to be “modest.”

AMC Entertainment Inc (NYSE:AMC) fell more than 3% lower after the movie chain operator reported quarterly results that beat on both the top and bottom lines as box office hits including “The Batman,” spurred a return to the big screen for moviegoers.

Health care stocks were boosted by a 4% jump in Biogen (NASDAQ:BIIB) after the drugmaker made further progress toward the potential approval of its proposed Alzheimer’s disease drug lecanemab.

Biogen and Eisai submitted a rolling drug Biologics License Application for lecanemab that could, depending on the outcome of an ongoing confirmatory late-stage clinical study, pave the way for the companies to apply for full approval of the drug later this year.

Novavax (NASDAQ:NVAX) cut losses to trade more than 1% higher despite reporting quarterly results that fell short of Wall Street estimates.

Energy stocks shrugged off a decline in oil prices as intensifying lockdown measures in Shanghai continued to stoke fears about demand. “[T]he strict zero-Covid strategy in China is putting the brakes on oil demand there,” Commerzbank said in a note.