23/04/24 Briefing

US stocks climbed on Tuesday, on track for further gains as tech-focused investors prepared for a fresh wave of earnings highlighted by struggling Tesla (TSLA).

The benchmark S&P 500 (^GSPC) rose more than 1% after staging a comebackfrom a six-day run of losses the previous session. The Dow Jones Industrial Average (^DJI) climbed roughly 0.6%, while the tech-heavy Nasdaq Composite (^IXIC)soared, up about 1.5%.

The gauges are looking to build on a positive start to the week that saw the S&P 500 close below 5,000 for the first time since February. Stocks rebounded as investors jumped back into the likes of AI darling Nvidia (NVDA), which had lost ground amid worries about higher-for-longer interest rates.

Many in the market are looking to this week's rush of Big Tech earnings to pull stocks out of the slump that has dogged them since the start of the year — though some on Wall Street hold out less hope.

Tesla's earnings are likely to be a catalyst for the S&P 500, given the stock's weight in the index. The results, due after the market close, are seen as pivotal for Elon Musk's EV maker, whose shares have been hit hard by a disappointing delivery outlook, the cancellation of plans for a long-awaited sub-$30,000 model, and a strategy switch to robotaxis, among other headwinds.

As the first "Magnificent Seven" to report, Tesla sets the stage for highly anticipated results from Meta (META), Microsoft (MSFT), and Alphabet (GOOG) later in the week, though some suspect the megacaps' momentum is fading.

Meanwhile, legacy automaker GM (GM) got the ball rolling on earnings on Tuesday, posting strong first quarter results and upping its full-year guidance. Its shares popped around 5%. Spotify (SPOT) stock jumped after the audio streamer swung to a profit amid an earnings beat.