US stocks fell early Tuesday
After staying in positive territory all night.
Stocks rose Monday as investors took note of encouraging signs from corporate earnings and hoped the Federal Reserve would slow the pace of rate hikes.
The Dow Jones Industrial Average rose 417.06 points (1.3%) to 31499.62, a six-week high. The S&P 500 rose 44.59, or 1.2%, to 3797.34. The technology-rich Nasdaq Composite rose 92.90, or 0.9%, to 10952.61, rebounding after starting the day in the red.
Last week, the Dow Jones Industrial Average posted its best three-week gain since November 2020, relieving investors of the selling pressure that has rocked portfolios this year.
The rise was started in part by a wave of corporate earnings, especially from banks and airlines, which provided a brighter outlook for the U.S. economy.
Stocks then surged on Friday after the Wall Street Journal reported that Fed officials are likely to consider reducing the rate hike in December.
“Market participants desperately want the Fed to either pause or change course,” said Chris Seniek, chief investment strategist at Wolf Research. He warned that those hopes would likely be dashed as it would put pressure on him to maintain a hawkish stance.
“I think the Fed’s moratorium is still a long way off,” Seniek said.
Meanwhile, Asian stocks broadly fell on Tuesday as markets remained nervous over the outcome of the Communist Party Congress in China, which removed a key reformist from the top ranks of the ruling party’s leadership.
Hong Kong’s benchmark failed to sustain its early gains after falling 6.4% the day before, ending at its lowest close in more than a decade.
Tokyo and Sydney rose, while Shanghai, Seoul and Mumbai fell. Hong Kong’s Hang Seng Index fell 0.2% to 15,151.01, while the Shanghai Composite Index also fell 0.1% from its previous gain to 2,975.08. Taiwan’s benchmark he fell 1.5%. Tokyo’s Nikkei 225 Index rose 1.2% to 27,301.50, while Seoul’s Kospi fell 0.1% to 2,235.07. Australia’s S&P/ASX 200 rose 0.3% to 6,798.60. India’s Sensex fell 0.3%.