Investing.com - The S&P clawed back its losses from a day earlier Tuesday, as rallying tech stocks overshadowed mostly downbeat corporate results.
The Dow Jones Industrial Average rose about 1.77%. The S&P 500 rose 1.57%, while the Nasdaq Composite rose 1.58%.
A sea of green swept over Wall Street as rallying chip stocks set the stage for a rebound from a slump a day earlier, leading the broader market out of correction territory.
Shares of Nvidia (NASDAQ:NVDA), Intel (NASDAQ:INTC), Broadcom (NASDAQ:AVGO) and KLA-Tencor (NASDAQ:KLAC) rose sharply, helping the wider tech sector pare some of its recent losses. That overshadowed mostly downbeat earnings from corporates, which did little to ease concerns about peak profit.
Despite the rally in semis, the sector is still nursing losses of nearly 20% for the month.
Coca-Cola (NYSE:KO) rose more than 2%, strengthening consumer staples, after reporting quarterly results that beat consensus on both the top and bottom lines. The beverage giant's bullish quarterly haul was supported by strong sales of Diet Coke following its efforts to boost the brand's appeal among millennials.
General Electric (NYSE:GE) fell about 9% after the company missed earnings and revenue estimates and slashed its dividend to a penny in a bid to bolster its balance sheet. Its shares came under heavy pressure after it disclosed that the Securities and Exchange Commission was expanding a probe into the company's accounting practices.
Energy stocks, meanwhile, supported the move higher in the broader market, shrugging off a slump in oil prices amid fears rising trade tensions could hurt oil demand.
The rally on Wall Street comes as analysts touted further gains in the broader averages on the back of month-end buying, decreased volatility and the return of share buybacks.
The October month-end will lead fixed-weight asset managers to increase their equity exposure, JPMorgan said.
"We also expect volatility to decline into year-end, which should prompt systematic investors to re-build equity positions," it added.
In corporate news, Facebook (NASDAQ:FB) reversed an initial slump in after-hours trade after it beat on earnings, but fell short of revenue estimates as active user growth missed estimates.
Facebook reported earnings of $1.76 a share on revenue of $13.73 billion, compared with estimates for earnings of $1.47 a share on revenue of $13.77 billion.
On the economic front, consumer confidence hit an 18-year high, reaffirming the narrative of a strong U.S. economy.
The Conference Board’s consumer confidence gauge rose to 137.9 in October from 135.3 in September, beating economists’ forecast for a reading of 136. That was the highest reading in since Sept. 2000.
Top S&P 500 Gainers and Losers Today:
Under Armour (NYSE:UAA), Vulcan Materials (NYSE:VMC) and Akamai Technologies (NASDAQ:AKAM) were among the top S&P 500 gainers for the session.
FLIR Systems (NASDAQ:FLIR), General Electric (NYSE:GE) and Allergan (NYSE:AGN) were among the worst S&P 500 performers of the session.