Stock market gains momentum
Stocks rose on Wall Street Tuesday and added to weekly gains for major indexes that have been bogged down in a broad slump amid inflation and recession concerns. U.S. stock indexes rose on Tuesday as strong results from Goldman Sachs calmed worries of a substantial hit to profit from rising interest rates, but a rise in government bond yields pushed megacap growth stocks lower.
The S&P 500 rose 0.8% as of 1:09 p.m. Eastern. The Dow Jones Industrial Average rose 250 points, or 0.8%, to 30,426 and the Nasdaq rose 0.7%.
Industrial and technology companies made solid gains. Lockheed Martin jumped 6.1% after reporting strong third-quarter earnings. Apple rose 1.9%.
Bond yields rose. The yield on the 10-year Treasury, which influences mortgage rates, rose to 4.03% from 4.01% late Monday. The yield on the 2-year Treasury, which tends to track expectations for future Federal Reserve action, rose to 4.46% from 4.45% late Monday.
Inflation has been cooling in some areas of the economy , but still hot, compelled the Fed to remain on track with its plan to continue increasing rates. The central bank has already raised its benchmark interest rate five times this year, with the last three increases by three-quarters of a percentage point. Another raise of three-quarters of a percentage point at its next meeting in November is being expected.