Stocks Close Higher As Investors Await Inflation Report

Lauren Simmons only female full-time stock broker on Wall Street

Stocks surged Tuesday as investors’ optimism grew for a new year’s early rally while eyeing economic data and corporate earnings coming later in the week.

The Dow Jones Industrial Average added 187.9 points, or 0.56%, to end at 33,705.55. The S&P 500 advanced 0.7%, while the Nasdaq Composite gained 1%.

The S&P 500 was up about 1.1% in the first five trading days of 2023 through Monday, which some say is a good indicator for the rest of the year. The Nasdaq has rallied in recent days as hopes over cooling inflation pushed investors to beaten-up technology stocks.

Signup for the USA Herald exclusive Newsletter

Billionaire investor Paul Tudor Jones said the Federal Reserve likely would not break the economy, halting rate hikes before it does so. Jones, who noted he wasn’t making a specific forecast, said there was a huge demand for stocks on the way this year due to share repurchases and mergers.

“You’ve probably got something just under a trillion dollars of excess demand in U.S. stocks,” Jones said Tuesday on CNBC’s “Squawk Box.” “Where is the selling going to come to offset that that demands coming from buybacks, from the corporate line items, from some combination of buybacks and M&A? That’s a significant amount. Ceteris paribus, everything being the same, the stock market would be up 7% or 8% this year.”