© Reuters.
By Yasin Ebrahim
Investing.com -- The S&P 500 rallied Tuesday, powered by an ExxonMobil-led climb in energy and jump in growth stocks despite a fresh climb in Treasury yields on expectations for aggressive Federal Reserve tightening ahead.
The S&P 500 rose 2.6%, the Dow Jones Industrial Average gained 2.3%, or 671 points, the Nasdaq was up 2.7%.
Energy climbed more than 4%, supported by a 6% spike in ExxonMobil (NYSE:XOM) after Credit Suisse upgraded its rating to stock outperform from buy amid expectations the oil major’s differentiated growth strategy will drive “excellent” returns.
Tesla (NASDAQ:TSLA), meanwhile, drove the gains for consumer stocks, rising more than 10% after chief executive Elon Musk detailed to lay off about 10% of the electric vehicle maker’s salaried staff
Tech found its footing following a selloff last week as investors snapped up beaten down big tech names including Apple (NASDAQ:AAPL) and Alphabet.
Alphabet Inc Class A (NASDAQ:GOOGL) jumped more than 4% as the search-engine is reportedly in talks with Netflix (NASDAQ:NFLX) about a potential advertising agreement. Netflix was down nearly 3%.
Twitter (NYSE:TWTR) was up more than 2% after the social media giant sent a letter to shareholders urging them to back Musk’s $44 billion take-private deal. Musk reportedly highlighted three factors that needed to be addressed to proceed with the deal including Twitter shareholder approval, information on fake accounts on the platform and securing financing for the deal.
Chip stocks were also heavily involved in the tech meltup, powered by a surge in NVIDIA (NASDAQ:NVDA).
Kellogg Company (NYSE:K) climbed more than 2% after the cereal maker detailed plans to split into three separate public entities focussed on cereal, snacks, and plant-based businesses. The spin offs are expected to be completed in the third quarter.
On the economic data front, the housing market continues to show signs of cooling, though prices remain firm amid a lack of supply.
“The sharp decline in resale activity will thus weigh considerably on the housing competent of GDP which is on track to contract by roughly 20% in the second quarter,” Jefferies said in note.
Housing stocks remained firm, with KB Home (NYSE:KBH), PulteGroup (NYSE:PHM) and Lennar in the green.
Lennar (NYSE:LEN) rose more than 2% after reporting second-quarter results that topped Wall Street forecasts on both the top and bottom lines.
In other news, Spirit Airlines (NYSE:SAVE) climbed 7% after JetBlue Airways (NASDAQ:JBLU) sweetened its offer to buy the low-cost airline for $33.50 a share.
