U.S. stocks showed strength with the S&P 500 rising 1.6%, the Nasdaq 100 up 1.9%, and the Dow Jones increasing by 1.6%. This comes after Monday's significant drop, with investors still concerned about global economic growth and the White House's stance towards Federal Reserve Chair Jerome Powell. Technology stocks led the rally as traders prepared for Tesla's (TSLA, Financial) earnings report.
Despite Tuesday's rebound, tech companies have faced significant sell-offs this year, prompting options traders to hedge against further declines. Anwiti Bahuguna from Northern Trust Asset Management advised against overreacting to daily market fluctuations amid high uncertainty.
Among individual stocks, 3M saw a rise of over 6% after maintaining its full-year financial guidance, acknowledging new risks from trade tensions. Boeing's stock increased slightly after agreeing to sell its flight navigation business for $10.6 billion. On the downside, Verizon Communications' shares fell due to a larger-than-expected decline in mobile phone subscribers.
Later, the market's focus will shift to Tesla's (TSLA, Financial) first-quarter earnings report. The company's stock has dropped over 40% this year amid controversies involving CEO Elon Musk's role in federal government affairs and declining global sales.
