U.S. stocks rebounded on Tuesday as steady trading in commodity prices and a fresh basket of corporate earnings helped balance out the uncertainty of the Russia- Ukraine conflict and the prospect of more aggressive rate hikes by the Federal Reserve.
The rebound comes as Treasury yields hit their highest level since May 2019, 2.375%, after Fed Chairman Jerome Powell on Monday signaled more aggressive rate hikes may be needed to combat inflation. His remarks were made at the National Association of Business Economics.
Financial shares including JPMorgan, Goldman Sachs and Bank of America rose in tandem with higher yields.
Oil closed at $111.76 per barrel, while Brent, the global benchmark, rose to $115.48. Oil prices are up more than 45% this year, and prices for wheat and corn have also surged. Natural gas prices also remain elevated above $5.00
In stocks, Nike shares rose after profits and sales beat Wall Street estimates. Additionally, the apparel giant reiterated its commitment to Foot Locker, which gets a big chunk of revenue from its products.
Security firm Okta was under pressure after reports of a security breach by a group called LAPSUS$ based on screenshots shared online.
“We believe the screenshots shared online are connected to this January event. Based on our investigation to date, there is no evidence of ongoing malicious activity beyond the activity detected in January” said Chief Security Officer David Bradbury.
Alibaba shares rose after the Amazon of China announced a $25 billion share repurchase plan, its largest ever.
Tesla in focus as CEO Elon Musk opened Germany’s Gigi factory in Berlin along with German Chancellor Olaf Scholz. The move is a big win for investors, according to Wedbush Securities analyst Dan Ives.
“We cannot stress the production importance of Giga Berlin to the overall success of Tesla’s footprint in Europe and globally,” said Ives in a research note to clients.
Moderna in focus as it announced new development programs to expand use of its COVID-19 vaccine to treat conditions related to the virus.
In cryptocurrencies, Bitcoin traded above the $42,000 level.
