US stock indices finished mostly higher on Tuesday as traditional economic sectors staged a rebound. The S&P 500 rose 0.3%, the Dow advanced 530 points, and the Nasdaq slipped 0.1%. Long-term Treasury yields moved lower alongside energy prices, bolstering expectations that the Federal Reserve will avoid back-to-back rate hikes at next week’s policy meeting.
Cyclical and traditional sectors recovered from Monday’s pullback. Banks and asset managers bounced back, with Berkshire Hathaway up 1.4% and Goldman Sachs gaining 1.1%. Healthcare stocks also rallied strongly: Eli Lilly climbed 3.5%, Merck added 3.2%, and Johnson & Johnson rose 2.2%.
On the earnings front, 3M jumped 5.8% after beating profit forecasts and raising its full-year outlook for a second straight quarter. By contrast, General Motors sank 6.8% after narrowing its profit guidance on waning sales. SpaceX slipped 0.1% and Netflix fell 1.7% ahead of their earnings releases after the closing bell.
