The stock market surged Tuesday, recouping losses from the previous session, as investors cheered another round of solid quarterly earnings results from corporate America despite inflationary pressures and fears of a recession.
The Dow Jones Industrial Average jumped 2.4%, over 700 points, while the S&P 500 gained 2.7% and the tech-heavy Nasdaq Composite 3.1%.
Though analysts have been warning of a slowdown in corporate earnings amid recession fears, earnings for S&P 500 companies are still expected to rise—both in the current quarter and for the full year—and second-quarter earnings reports so far have borne that out.
Shares of Johnson & Johnson fell 2% after the pharmaceutical giant reported strong quarterly earnings and revenue, though the company also slashed its full-year financial forecasts due to macroeconomic pressures.
Shares of toymaker Hasbro rose less than 1% after similarly beating expectations, while tech company IBM dropped over 5% following disappointing earnings results.
Nearly 50 companies in the S&P 500 have reported second-quarter earnings so far—with roughly 90% of them beating analyst expectations, according to Refinitiv data.