Oct. 25 (UPI) — U.S. stocks climbed for a third consecutive day Tuesday, led by a 2.25% gain in the tech-heavy Nasdaq Composite index.
The Dow Jones Industrial average increased 337.12 points, or 1.07%, to close at 31,836.74. The S&P 500 climbed 61.77 points, or 1.63%, to 3,859.11, and the Nasdaq gained 246.5 points, or 2.25%, to 11,199.12.
“It’s a rainbow after a pretty big storm,” Paul Zemsky, chief investment officer of multi-asset strategies and solutions at Voya Investment Management said, according to CNBC.
“We’re seeing enough slowing in the economy that we don’t have to worry about the Fed really raising rates beyond what’s already priced.”
U.S. Treasury yields fell Tuesday, after a report that rising home prices slowed in August. The 10-year Treasury fell about 17 basis points to 4.067% and the 2-year Treasury was down about 4 basis points to 4.46%.
“The number one thing driving stocks higher today is the reduction in yields,” Keith Lerner of Truist Wealth said, according to Seeking Alpha.
Tuesday’s gains came amid a wave of third-quarter earnings reports.
Coca-Cola reported earnings per share of 69 cents on $11.05 billion in revenue, beating expectations of earnings per share of 64 cents and revenue of $10.52 billion.
General Motors also beat estimates with $2.25 earnings per share on revenue of $41.89 billion.
Microsoft and Google’s parent, Alphabet, reported earnings after the markets closed, with mixed results.
Microsoft beat analyst expectations with earnings per share of $2.35 on $50.1 billion in revenue compared with expectations of $2.29 per share on $49.6 billion in revenue.
A surge in sales driven by the pandemic has slowed, with the company’s Intelligent Cloud segment reporting 20% growth in the quarter, down from 31% a year ago.
Alphabet reported earnings per share of $1.06 on $57.27 billion in revenue, missing analyst expectations of $1.25 per share on $58.2 billion in revenue. The company’s stock price fell in after-market trading.
