Wall Street opened higher on Tuesday, extending its record-setting run as upbeat corporate earnings and optimism ahead of the Federal Reserve’s policy meeting buoyed investor confidence.
Indexes climb to new highs on broad market strength
US stocks rose to new all-time highs on Tuesday, driven by a fresh wave of encouraging earnings results.
The S&P 500 gained 0.3%, the Nasdaq Composite advanced 0.6%, and the Dow Jones Industrial Average climbed 354 points, or 0.7%.
The rally pushed major indexes further into record territory.
The S&P 500 notched its first-ever close above 6,800 on Monday, while the Nasdaq and Dow also closed at record levels.
Investor sentiment remained upbeat as roughly one-third of S&P 500 companies have now reported third-quarter results, with 83% beating earnings expectations, according to data from FactSet.
The strong showing has helped ease concerns about slowing growth and margin pressure heading into the final months of the year.
The market’s momentum came ahead of the Federal Reserve’s two-day policy meeting, which began Tuesday.
The central bank is widely expected to deliver its second interest rate cut of the year, as policymakers balance inflation control with signs of softening in the labor market.
Traders will be watching closely for any signal from Fed Chair Jerome Powell on Wednesday about the potential for another rate cut in December.
Earnings season fuels market gains
Corporate earnings were the main driver of Tuesday’s market strength.
Shares of UPS surged 10% after the logistics giant reported third-quarter revenue of $21.4 billion, above Wall Street’s forecast of $20.83 billion.
Adjusted earnings per share came in at $1.74, topping consensus estimates of $1.24.
The company’s fourth-quarter guidance also exceeded expectations.
UnitedHealth fell 1.7% despite reporting adjusted earnings of $2.92 per share on $113.2 billion in revenue, both ahead of analyst estimates.
PayPal jumped 9% after delivering earnings per share of $1.34, beating the $1.20 expected by analysts.
The company also announced a quarterly dividend of 14 cents per share and revealed a partnership with OpenAI that will embed PayPal’s digital wallet directly into ChatGPT, allowing users to make instant payments through the AI tool.
Elsewhere, Wayfair rose 18% following a better-than-expected earnings report, while Sherwin-Williams advanced 7.7% after exceeding profit and revenue estimates.
Among technology names, Skyworks Solutions soared 18% after announcing a $22 billion all-stock-and-cash deal to acquire rival Qorvo, whose shares climbed 14% on the news.
Mixed reactions across sectors
Despite the broad rally, some companies disappointed investors.
Corning fell 3% after missing estimates on key cash flow metrics, while Sysco dropped 3.3% following weaker-than-expected quarterly results.
On the other hand, Amazon shares edged higher despite announcing plans to lay off about 14,000 employees, marking the largest job cuts in the company’s history.
With several of the “Magnificent Seven”—including Alphabet, Amazon, Apple, Meta Platforms, and Microsoft—set to report later this week, investors are closely monitoring whether strong earnings momentum can sustain Wall Street’s record-setting pace into November.
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