US Markets Finish Higher, Lifted By Tech Stocks

US stock markets ended higher on Tuesday, lifted by Apple and Microsoft, while a jump in Treasury yields elevated bank stocks ahead of a key inflation reading this week.

The S&P 500 and the Nasdaq reversed early losses and gained in the latter part of the session, driven by heavyweight growth stocks including Tesla and Amazon.

The S&P 500 banking index rallied as the benchmark 10-year US Treasury yield hit its highest level since November 2019 on mounting expectations the US Federal Reserve will start tightening monetary policy.

Shares of Bank of America Corp, JPMorgan Chase & Co and Wells Fargo all gained.

The S&P 500 energy sector index sank as investors worried that the resumption of indirect talks between the United States and Iran could revive an international nuclear agreement and allow more oil exports from the OPEC producer.

Upbeat comments from French President Emmanuel Macron about his meeting with Russian President Vladimir Putin over the Ukraine crisis also dented oil prices and reduced anxiety on Wall Street, said Scott Ladner, chief investment officer at Charlotte-based wealth management firm Horizon Investments.

"Today's gain is probably due to some of the Macron headlines, but it's also just recognition of the fact that the economy is in pretty good shape, and we probably overdid it a little to the downside," Ladner said.

With Tuesday's rise, the S&P 500 remains down about 5 percent so far this year, while the Nasdaq has lost about 9 percent.

US consumer prices data, set to be released on Thursday, is forecast at a four-decade high of 7.3 percent. The numbers follow strong US labour data last week that added to investor concerns that the Fed will tighten rates faster than thought.

Concerns around aggressive policy tightening by the US central bank, geopolitical tensions in Ukraine and mixed results from Big Tech have weighed on the major US indexes since the start of the year.

The S&P 500 gained 0.9 percent to 4,525, while the Nasdaq Composite gained 1.3 percent to 14,194. The Dow Jones Industrial Average rose 1.1 percent to 35,462.

Earnings were mixed on Tuesday, with Pfizer down after the drugmaker's full-year sales forecast for its Covid-19 vaccine and antiviral pills fell short of estimates.

Amgen surged after the company announced a buyback of up to US$6 billion and forecast earnings would more than double by 2030.

Facebook-owner Meta Platforms fell after billionaire investor Peter Thiel decided to step down from the company's board, driving a fourth day of losses in the stock after its bleak forecast last week wiped out billions of dollars in market value.

Peloton Interactive soared despite slashing its revenue forecast as the exercise bike maker said it would replace its chief executive and cut jobs in a bid to revive sagging sales. (Reuters)