Strong corporate earnings propel US markets to new highs

US stocks surged higher on Tuesday as a wave of corporate earnings results exceeded expectations, driving major indices to close in positive territory. The Dow Jones rose by 0.69 per cent, the S&P 500 gained 1.2 per cent, and the Nasdaq surged 1.59 per cent.

In company news, Spotify saw a remarkable 11.4 per cent rally after reporting better-than-expected earnings and upgrading its guidance for the future. UPS and GE Aerospace also outperformed, closing 2.4 per cent and 8.3 per cent higher, respectively. However, PepsiCo closed 2.9 per cent lower due to recalls and weakened demand from lower-income consumers in the U.S.

Tesla reported a 9 per cent drop in revenue, its largest decline since 2012, but remains optimistic about launching more affordable models and optimizing production to meet growth targets.

Looking ahead, Meta Platforms is set to report earnings on Wednesday, with Alphabet and Microsoft scheduled to follow on Thursday, wrapping up a technology-heavy earnings week.

Meanwhile, in global markets, European indices closed higher, with the FTSE 100 hitting a record high and Germany’s DAX leading gains. In Asia, Chinese speculators driving gold prices to record highs indicate a shift in influence towards Asian traders.

In Australia, traders are closely watching the March quarter inflation figures, with expectations that the Reserve Bank may start easing but not until 2025. The Australian share market closed 0.45 per cent higher at 7,683.51.

Overall, the positive earnings reports and global market movements signal a strong start to the week for investors, with optimism prevailing despite some challenges in specific sectors.