Dow's 335-Point Rally Led by Gains for Shares of Goldman Sachs, Caterpillar
Goldman Sachs and Caterpillar shares led the Dow Jones Industrial Average higher on Tuesday, helping the index recover from a three-day losing streak.
The Dow closed up 335.06 points, or 1.1%, at 30,677.80. The S&P 500 gained 1.3% to 3,783.24, and the Nasdaq Composite rose 1.6% to 11,143.36.
Goldman Sachs shares jumped 3.4% after the investment bank reported better-than-expected earnings. Caterpillar shares rose 2.8% after the construction equipment maker raised its full-year profit forecast.
Other Dow components that contributed to the rally included Boeing, which gained 2.2%, and UnitedHealth Group, which rose 1.9%.
The Dow's gain on Tuesday snapped a three-day losing streak. The index had fallen more than 500 points over the previous three sessions amid concerns about the Federal Reserve's interest rate hike plans and the war in Ukraine.
However, investors appeared to be more optimistic on Tuesday after Federal Reserve Chairman Jerome Powell said that the central bank is committed to bringing inflation down without causing a recession.
Powell's comments helped to ease concerns about the Fed's plans to raise interest rates. The Fed is expected to raise interest rates by 50 basis points at its next meeting in May.
The war in Ukraine remains a major concern for investors, but there are signs that the conflict may be nearing an end. Russian and Ukrainian negotiators have held several rounds of talks, and there are reports that a ceasefire could be reached soon.
If a ceasefire is reached, it could provide a major boost to the global economy. The war has disrupted supply chains and caused energy prices to soar. A ceasefire would help to ease these disruptions and could lead to lower inflation.
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