- US stocks gained to near-record levels on Tuesday as inflation concerns eased due to falling yields and commodity prices.
- The tech-heavy Nasdaq 100 led the rally higher for the second day in a row, jumping almost half a percent.
- Copper and lumber prices are down about 8% and 30% from their recent high, respectively.
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The tech-heavy Nasdaq 100 led the stock market higher on Tuesday, extending its gains from Monday as worries about rising inflation eased. The Dow Jones and S&P 500 were within striking distance of record highs.
The easing of inflation fears has been sparked by a drop in interest rates and commodity prices like copper and lumber. Those essential building blocks for the US economy are down about 8% and 30% from their recent highs, respectively. Meanwhile, the 10-year US Treasury yield fell to a 1-month low at 1.537%.
Investors will have a better handle on the current pace of inflation on Thursday, when CPI data is officially released for the month of May. In April, CPI jumped 4.2%, marking the fastest rise in inflation since 2008.
Here's where US indexes stood at the 4:00 p.m. ET close on Tuesday:
- S&P 500: 4,227.23, 0.02%
- Dow Jones industrial average: 34,599.23, down 0.09% (30.75 points)
- Nasdaq composite: 13,924.91, 0.31%
Regulation concerns in the cryptocurrency space helped spark a wide sell-off, with $200 billion in market value being wiped out in a single day.
The IRS chief Charles Rettig asked Congress for more authority to regulate the crypto industry. Rettig wants a law passed that would require cryptocurrency transfers of more than 10,000 to be reported to the IRS. pass a law to h
The FDA approval of Biogen's drug for Alzheimer's helped drive a $60 million gain for Warren Buffett's Berkshire Hathaway, which owns a stake in the biotech company.
Shares of Clover Health, a recent SPAC brought public by Chamath Palihapitiya, surged as much as 41% in Tuesday trades as the Reddit-fueled trading mania spread to the health services company.
That Reddit-fueled trading mania also spread to Wendy's, with the fast-food restaurant surging as much as 19% amid the wide sharing of a bullish due-diligence post made on the Wall Street Bets forum.
Shares of Tesla moved higher after its May car sales in China showed a 29% surge.
Oil prices were higher. West Texas Intermediate crude jumped 1.4%, to $70.20 per barrel. Brent crude, oil's international benchmark, rose 1.22%, to $72.36 per barrel.
Gold fell 0.1%, to $1,895.60 per ounce.