Wall Street’s three main indexes closed higher on Tuesday (1/2). This was driven by the energy sector which closed up significantly to touch a record high. However, investors are still overshadowed by the current market uncertainty.
The Dow Jones Industrial Average rose 273.38 points, or 0.78 percent, to 35,405.24, the S&P 500 gained 30.99 points, or 0.69 percent, to 4,546.54. and the Nasdaq Composite added 106.12 points, or 0.75 percent, to 14,346.00.
Throughout January 2022, the S&P 500 and Dow fell by 5.3 percent and 3.3 percent, respectively. But now both have recorded gains for the third day in a row. The Nasdaq, which fell 8.99 percent in the first month of 2022, has posted four positive sessions in the last five days.
On the other hand, the market is still haunted by the plan to increase the Federal Reserve’s benchmark interest rate. Philadelphia Fed chief Patrick Harker said that the US central bank will raise interest rates four times this year.
Meanwhile, another Fed chairman, Atlanta Raphael Bostic said the Fed needs to act immediately to control inflation expectations.
However, investors predict that the Fed will raise interest rates five times this year. Meanwhile, some Wall Street analysts predict that there will be seven hikes in the benchmark interest rate this year.
Meanwhile, ongoing geopolitical tensions between Ukraine and Russia also added to market volatility. Ukraine’s president has signed a decree to increase its armed forces by 100,000 troops over the next three years.
On the other hand, rising energy commodity prices led Exxon Mobil Corp to post its biggest quarterly profit in seven years on Tuesday. As a result, Exxon shares jumped 6.4 percent, closing above $80 a share for the first time since April 2019.
Shares of Google parent Alphabet Inc were also up 1.7 percent ahead of quarterly results published after closing trading. While the financial performance reports of Amazon Inc. and Meta Platforms Inc. are also ready to be released this weekend.
Meanwhile United Parcel Service Inc shares jumped 14.1 percent, their biggest one-day gain in 18 months. The shares jumped after the company projected 2022 earnings above market expectations.
As of Tuesday, 184 S&P 500 companies had reported quarterly results and 78.8 percent of those had posted earnings that exceeded analyst expectations.
Trading volume on Wall Street was 11.71 billion shares, lower than the 12.45 billion share average for the past 20 days.