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Roblox ( RBLX ) falls after Hindenburg short on co
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U.S.-listed shares of Chinese cos fall
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PepsiCo ( PEP ) rises after results
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Indexes up: Dow 0.2%, S&P 500 0.8%, Nasdaq 1.3%
(Updated at 11:55 a.m. ET)
By Lisa Pauline Mattackal and Pranav Kashyap
Oct 8 (Reuters) - Wall Street's main indexes rose on
Tuesday, as investors shifted their attention to the upcoming
third-quarter earnings season and inflation data, which could
offer some clues on the Federal Reserve's rate cut trajectory.
The indexes regained some ground after a selloff on Monday,
where all three major indexes fell roughly 1%, pressured by
surging Treasury yields, escalating Middle East tensions, and a
re-evaluation of U.S. rate expectations.
The Dow Jones Industrial Average rose 64.71 points on
Tuesday, or 0.16%, to 42,019.35, the S&P 500 gained 45.52
points, or 0.80%, to 5,741.49 and the Nasdaq Composite
gained 225.48 points, or 1.26%, to 18,149.38.
Most S&P 500 sectors were up, with the information
technology index leading the gains with a 1.8% rise.
An index tracking energy stocks lagged, losing 2.8%,
and was on track for its worst day since April 30, as oil prices
retreated following Monday's rally.
The two-year Treasury yield slipped slightly from Monday's
highs, but the yield on the benchmark 10-year note
remained above 4%, as strong economic data last week prompted
investors to trim their rate cut bets.
Traders have priced in a nearly 89% chance of a 25 basis
point interest rate cut from the Fed at its November meeting,
according to CME FedWatch, while they had previously seen strong
chances of a 50 bps cut.
Markets now await consumer price index data, due this
Thursday, for more clues on the path of interest rates.
"The Fed keeps telling you that they're data dependent - so
the end of this week is big to see whether or not inflation is
truly tamed," said Kim Forrest, chief investment officer at
Bokeh Capital Partners.
"But the Fed has been signaling where - not necessarily when
- rates are going, and they have signaled that they're going
lower."
Third-quarter earnings are also in focus, with major banks
scheduled to report this Friday. The estimated earnings growth
rate for the S&P 500 is 5%, according to LSEG estimates.
PepsiCo ( PEP ) reversed premarket losses, rising 1.2%
after the snack maker trimmed its forecast for annual sales
growth, but reported adjusted earnings per share above
estimates.
The materials sector fell 0.5% to an over two-week
low, as metal prices slipped on waning optimism over China's
stimulus measures.
U.S.-listed shares of Chinese companies also slid, tracking
losses in domestic stocks. Shares of Alibaba Group,
JD.com and PDD Holdings ( PDD ) lost between 5.9% and
6.3%.
Roblox ( RBLX ) dropped 3.3% after Hindenburg Research on
Tuesday disclosed a short position in the gaming platform.
Fed Governor Adriana Kugler said earlier on Tuesday she
supported further interest rate cuts if inflation continues to
ease, as she expects.
Comments from other Fed officials including Raphael Bostic,
Susan Collins and Philip Jefferson are also expected later in
the day.
Advancing issues outnumbered decliners by a 1.05-to-1 ratio
on the NYSE and by a 1.09-to-1 ratio on the Nasdaq.
The S&P 500 posted 25 new 52-week highs and 3 new lows,
while the Nasdaq Composite recorded 53 new highs and 84 new
lows.
(Reporting by Lisa Mattackal and Pranav Kashyap in Bengaluru;
Editing by Shinjini Ganguli)