By Chibuike Oguh
NEW YORK (Reuters) – Global stocks rose while U.S. yields dropped on Tuesday as markets eyed upcoming economic data as well as a plethora of corporate earnings, brushing aside the political fallout from President Joe Biden’s decision to end his reelection bid.
Investors are awaiting the quarterly results of Tesla and Alphabet after the closing bell on Tuesday, kick-starting earnings reports from megacap technology stocks that have driven recent market gains.
Markets are also eyeing the release of the core personal consumption expenditures index which is due on Friday and is the Fed’s preferred inflation measure. The yield on benchmark U.S. 10-year notes fell 3.5 basis points to 4.225%
“The market is in the show-me-the-money stage where it’s about the earnings being delivered,” said Wasif Latif, chief investment officer at Sarmaya Partners.
MSCI’s gauge of stocks across the globe rose 0.26% to 819.00. On Wall Street, all three major indexes were advancing with consumer discretionary and technology stocks leading the gains. In Europe, the pan-European STOXX 600 index finished up 0.07% helped by a rally in technology-related shares.
“We’ve had a strong run up so far this year and a lot of the good news up until now is baked in, whether it’s earnings related or rate-cut related,” Latif added.
Vice President Kamala Harris will campaign in the battleground state of Wisconsin on Tuesday after securing support from a majority of delegates to the Democratic National Convention, making her the party’s presumptive nominee.
The Dow Jones Industrial Average rose 0.21% to 40,500.79, the S&P 500 gained 0.33% to 5,582.50 and the Nasdaq Composite gained 0.55% to 18,107.32.
(Reporting by Chibuike Oguh in New York; Editing by Chris Reese)