By Yasin Ebrahim
Investing.com – The Dow racked up gains Tuesday, as dip-buyers returned to big tech stocks, shrugging off an ongoing melt-up in rates as the quarterly earnings season heats up.
The Dow Jones Industrial Average was up 1.5%, or 501 points, The S&P 500 rose 1.6%, the the Nasdaq climbed 2.2%.
Big tech attracted dip-buying action to help the broader market close higher. Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN) led the move higher, closing up more than 3%.
Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) also end the day higher.
An ongoing rally in Treasury yields saw the 10-year Treasury top 2.9% for the first time since 2018, but that didn’t sour sentiment in tech as quarterly earnings came into focus.
IBM (NYSE:IBM) and Netflix are set to report results after the closing bell. Netflix fell more than 18% in afterhours trade after reporting a decline in subscribers in the first quarter, confounding expectations for a 2.8 million net increase.
Netflix (NASDAQ:NFLX) will garner most of the attention after dropping more than 40% from its peak.
Twitter (NYSE:TWTR), meanwhile, remained in the headlines on reports that Apollo Global Management (NYSE:APO) is reportedly weighing up financing a potential takeover offer for the social media company.
Johnson & Johnson (NYSE:JNJ) erased early losses to close nearly 4% higher despite trimming its profit forecast for the full year and pulling its guidance on Covid vaccine sales following mixed first-quarter results.
Hasbro (NASDAQ:HAS) lifted its full-year profit outlook after reporting a quarterly earnings miss. Its shares were up more than 5%.
Consumer discretionary stocks were also in ascendency, supported by a rally in travel and leisure stocks including Penn National Gaming (NASDAQ:PENN), Las Vegas Sands (NYSE:LVS) and Carnival Corporation (NYSE:CCL) as investors looked ahead to a pick-up in travel demand as the pandemic cools.
Airline stocks including Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL) were also sharply higher after the Transportation Security Administration stopped its mandatory mask rule on planes.
Tesla (NASDAQ:TSLA), which ended the session 2% higher, will come under added scrutiny on Wednesday, when the electric vehicle maker is set to report quarterly results.
Energy was the sole sector in the red as oil prices fell for the second-straight day amid concerns about the impact on energy demand of slowing global growth in the wake of the Russia-Ukraine war.
The IMF cut its global growth forecast by 3.6% in both 2022 and 2023, from prior forecasts of 4.4% and 3.8% respectively.
In other news, Plug Power (NASDAQ:PLUG) jumped more than 9% after the fuel cell company clinched a deal to provide Walmart (NYSE:WMT) with liquid green hydrogen to power the latter’s forklifts and trucks in its U.S. distribution and fulfilment centers.