The Nasdaq is up nearly 2% as traders anticipate key tech earnings

The Nasdaq rose on Tuesday as investors awaited big tech earnings and evaluated floating yields for more clues about the health of the U.S. economy.

The tech-heavy index added 2%, while the S&P 500 rose 1.3%. The Dow Jones industrial average added 286 points, or 0.9%.

The yield on the benchmark 10-year Treasury note was last down 15 basis points at 4.085%. Creating instability Monday and saw last week. The 2-year Treasury yield fell 7 basis points to 4.424%.

Taken together, the yield and major index moves are signs that investors are “doubling down on expectations of an easy Fed,” said Cliff Hodge, chief investment officer at Cornerstone Wealth.

Hodge said Tuesday’s economic data was a point of hope for investors looking for the Federal Reserve to reverse its course of interest rate hikes as the central bank tries to curb inflation.

The S&P CoreLogic Case-Shiller 20-City House Price Index released Tuesday showed. House prices fell 1.3% of the 20 major cities were surveyed monthly in August, but that was 13.1% higher than a year ago. Consumer Confidence Index also fellTwo months later the outlook for the economy improved.

“The market is starting to get some indication that economic data is going to slow moving forward,” he said. “Tapping the effects from there, perhaps, gives the Fed a little more breathing room.”

Alphabet and Microsoft are among companies set to report earnings after a week with technology continuing to take center stage. Chipotle Mexican Grill is also on deck.

Those statements come after a brief run of results before the bell.

UPS, 3M and General Motors all posted better-than-expected earnings. UPS and GM shares rose in early trading, but 3M fell 1.6%.

Coca-Cola reported stronger-than-forecast earnings, sending shares up 1%.

So far this season, companies have proven that they can perform better than expected. That’s because analysts’ earnings estimates have fallen in recent months as companies face foreign exchange headwinds and other growth concerns. This can set the stock up for better rallies than feared outcomes.

Sam Stovall, chief investment strategist at CFRA, said: “Maybe investors are happy because it’s up 2% and not down 2%, but we’re also seeing reductions in 2023 projections. This bear market will probably play itself out, even if we get a near-term bear market rally.”

Meta platforms report on Wednesday, Amazon and Apple on Thursday. Given their sheer size and market capitalization, any moves will move the market forward.

Tuesday’s moves come after a back-to-back rally.

The Dow rose 417.06 points, or 1.3%, on Monday. The Nasdaq Composite added 0.9% higher and the S&P 500 added roughly 1.2%, with nine of 11 sectors leading gains led by health care.

“The market has become so accustomed to real price volatility that it’s almost desensitized,” said Jeff O’Connor, head of U.S. market structure for LiquidNet. “And wild moves make trading conditions very difficult.”

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