Earnings Rally Eases Rate Fears, But Tech Stumbles

Corporate earnings drove stocks higher for the second day on Tuesday, easing concerns about rising interest rates. The S&P 500 and Nasdaq Composite each advanced more than 1%, marking a continued recovery from their recent downturns.

On Wednesday morning, however, the markets showed little change as investors digested the latest financial disclosures from corporate America. A major tech company saw its shares jump over 12% in premarket trading following its announcement of a renewed focus on more affordable electric vehicle models. Despite this positive news, the company fell short of expectations in its latest quarterly results, disappointing investors.

In other earnings news, Visa and Texas Instruments experienced significant gains, jumping more than 2% and 6% respectively after reporting strong results. This positive trend reflects the broader earnings season, with over 20% of S&P 500-listed companies having reported so far. According to FactSet, over three-quarters of these companies have surpassed Wall Street's expectations.

The Nasdaq has demonstrated stability, rebounding from its median line. With more earnings announcements expected this week, the index may see further gains, particularly if upcoming results continue to surpass expectations.