- US stocks rose on Tuesday, as a shift into financial stocks raised hopes that the S&P 500's recent rally will soon extend beyond technology.
- The benchmark index rose 0.2% as a drop in Apple Inc.'s stock dampened a tech rally, while shares of battered regional banks rose. The KBW Regional Bank index increased by 5.4%, while the Russell 2000 increased by 2.7%.
- The S&P 500 is on the verge of entering a bull market. However, the mood in global markets has been cautious, with some questioning whether markets have jumped too quickly on the artificial intelligence hype. The Russell 2000 has beaten the tech-heavy Nasdaq 100 by at least 2.5 percentage points for the second time in three days. Small-cap stocks haven't had such a string of big wins since November 2020.
- The World Bank said in a report released Tuesday that the global economy is in jeopardy as sharp interest-rate increases crimp activity and exacerbate vulnerabilities in low-income countries. These concerns have kept stocks under pressure. However, with US inflation remaining high, traders increasingly expect the Federal Reserve to hold rates steady at its June meeting while leaving the door open for future hikes.
