- As corporate earnings helped bolster confidence amid persisting concerns about inflation and growth, US stocks climbed to all-time highs.
-As Tuesday's round of earnings began, the S&P 500 and Dow Jones Industrial Average both reached new highs, with UPS and General Electric gaining after strong results. Facebook fell after a revenue miss was mitigated by a commitment to buy back more shares and increase expenditure on digital offerings.
- The Stoxx Europe 600 index also increased by 0.8% to a new high. Reckitt Benckiser Group rose as the maker of Strepsils throat lozenges raised its sales forecast, while Novartis AG rose on rumors that its generic-drug unit would be spun off.
- The yield on the 10-year US Treasury note declined, while the dollar rose. The dispute over pricing pressures continues: former Treasury Secretary Lawrence Summers stated that officials will be unable to effectively deal with inflation reality unless it is properly acknowledged.
- The earnings season is helping to alleviate fears that rising inflation and tighter monetary policy could stifle the recovery from the pandemic. So far, 81 percent of members of the S&P 500 have posted better-than-expected earnings, however, Citigroup has warned that profit growth may be nearing its peak.
- Investors weighed the outlook for US stockpiles and prospects for talks that could help revive an Iranian nuclear agreement, allowing a pickup in crude exports. WTI crude oil traded above $84 a barrel.
- Microsoft extended gains after beating revenue estimates. Alphabet fell despite beating on revenue and earnings as Cloud revenue missed estimates.
