The US stock indices were mixed on Tuesday after a downturn, with both the S&P 500 and Nasdaq Composite closing down more than 1%.
The market remains weighed by investors’ concerns over escalating tensions in the Middle East while persistent inflation continues to dampen hopes for imminent Federal Reserve interest rate cuts with strong economic data underscoring the resilience of the US economy.
The 10-year Treasury yield has surpassed 4.6%, its highest level since November, signaling a potential for fewer rate cuts this year. Attention is also focused on Fed Chair Jerome Powell’s speech on Tuesday, which is anticipated to provide further clarity on the monetary policy outlook.
Investors could remain cautious due to current market corrections.
UnitedHealth’s shares rallied more than 7% following better-than-expected first-quarter revenue, boosting stocks in the healthcare sector.
Morgan Stanley’s shares similarly increased after the company beat first-quarter profit expectations, driven by a resurgence in investment banking. Conversely, Johnson & Johnson’s shares declined as the company’s first-quarter revenue fell short of analysts’ estimates, primarily due to lower-than-expected sales. Strong earnings reports could help the market recover.
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