Traders work on the floor of the New York Stock Exchange during morning trading in New York City.
Michael M. Santiago | Getty Images
The Nasdaq Composite Index rose on Tuesday, hitting a record high as investors braced for major corporate earnings releases, including reports from prominent technology companies.
The tech-heavy Nasdaq rose 0.7%, topping the 18,700 level. The S&P 500 rose 0.2%. Meanwhile, the Dow Jones Industrial Average underperformed, dropping 110 points, or 0.3%.
Alphabet, Snap, Reddit, Chipotle and Advanced Micro Devices are all scheduled to release their quarterly results after the market closes. Tech giants Metaplatform and Microsoft are scheduled to report on Wednesday, while Apple is expected to report on Thursday.
Shares of Meta and Alphabet rose more than 1% on Tuesday ahead of their earnings reports.
“This is an expensive market right now, so I think investors will need to accelerate earnings growth to justify the higher P/E ratio,” said Sam Stovall, chief investment strategist at CFRA Research.
This week is the busiest week of earnings season, with more than 150 S&P 500 companies scheduled to report results by Friday’s close.
Traders continued to focus on Treasury yields as the benchmark 10-year Treasury yield rose to its highest level since July.
With just five business days left until the U.S. presidential election, BTIG’s Jonathan Krinsky believes the market is likely to see more volatility in the short term.
“While we are not looking for a bear market, we remain confident that we are preparing for some downside volatility in the coming weeks,” Krinsky said in a note.
Key averages are derived from winning sessions. Notably, the blue-chip Dow ended its five-day losing streak, and the tech-heavy Nasdaq posted its eighth positive trading day in the past nine days.
