S&P 500, Nasdaq Log 2nd straight win

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  • U.S. stocks ended Tuesday’s session with a win, marking the second straight gain for major Wall Street indices.
  • Target stocks weighed on the consumer discretionary sector after issuing its second profit warning in less than a month.
  • The World Bank lowered its growth projection for the second quarter to 2.9% from 4.1%.

U.S. stocks reversed earlier losses to end higher on Tuesday despite Target’s second profit warning in less than a month and the World Bank’s sharp cut to its global growth outlook for the year.

The Nasdaq Composite and Dow industrials ended the session with their second consecutive wins, as did the S&P 500, helped by gains in most of its 11 sectors. The consumer discretionary sector, however, fell after Target cut its second-quarter profit margin outlook for the second time since mid-May. He said he was slashing prices to get rid of a pile of inventory and customers were withdrawing discretionary spending. Shares of Target and other retailers like Amazon and Walmart all fell.

What threatened to turn into a nasty afternoon for risk assets appears to have been averted… by a wave of buying,” said Chris Beauchamp, chief market analyst at online trading platform IG, in a note.”Insider buying in tech stocks continues at a brisk pace, and that seems to have reassured the broader market.”

Here’s where the US indices were at 4:00 p.m. Tuesday:

“The immediate earnings impact appears to be priced in, as evidenced by the rebound from Target’s warning, but this rebound in stocks could come under severe pressure by August as the next reporting season in the United States begins,” Beauchamp continued.

During the afternoon action, the World Bank said it saw much of the world sliding into


recession

and cut its growth outlook for 2022 to 2.9% from its previous projection of 4.1%.

Around the markets, economists at Goldman Sachs have forecast oil prices to climb to $140 a barrel this summer on lower Russian production and a gradual recovery in Chinese demand.

Nobel laureate Paul Krugman likened the crypto craze to the housing bubble and warned that digital tokens could be worthless.

The Securities and Exchange Commission is preparing to present its plan to overhaul the way the US stock market works – a move that could see trading firms compete in auctions to fill retail stock orders.

Oil prices have risen. West Texas Intermediate crude gained 1.4% to $120.19 a barrel. Brent, the international benchmark, gained 0.6% to $121.31.

Gold rose 0.8% to $1,857.50 an ounce. The 10-year yield fell 7 basis points to 2.98%.

Bitcoin fell 3.3% to $30,400.05.

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