US stocks rose for the second straight session as investors braced for earnings reports from some of the world's largest corporations this week. Traders also speculated on whether the Federal Reserve will slow the pace of interest-rate hikes following the release of weak economic data on Monday.
On Monday, more than 80% of stocks in the S&P 500 index closed in the green, boosted by gains in technology and health-care firms. The Nasdaq 100 gained more than 1% as well. Chinese shares listed in the United States fell after China's equity index fell, as President Xi Jinping solidified his power. Alphabet, Microsoft, and Meta Platforms are among the megacap companies set to report earnings this week.
Ten-year US Treasury yields ended the session around 4.25%. Investors expect incoming Prime Minister Rishi Sunak to repair the damage caused by her predecessor Liz Truss' massive package of unfunded tax cuts, which roiled financial markets.
Earnings remain a focus in the United States, with investors concerned about whether companies that are among the key profit-growth engines for the S&P 500 can deliver profits while margins are being squeezed by inflation. Of the nearly 20% of companies that have reported thus far, roughly 58% have reported positive surprises in both revenue and earnings per share.
As the Fed tries to stomp out inflation, recent earnings showing resilience and few signs of recession may be making some investors nervous about equities.