Global Markets Rally as Investors Eye Earnings and Economic Data

Global stocks rose, U.S. bond yields dropped and investors awaited economic data and corporate earnings. Tesla and Alphabet will launch the earnings season for top tech firms. U.S. Vice President Kamala Harris is set to campaign in Wisconsin. Dollar strengthened, crude oil prices fell, and gold prices edged up.

Global stocks rose while U.S. bond yields dropped on Tuesday as markets awaited upcoming economic data and corporate earnings, moving past U.S. President Joe Biden's decision to end his reelection bid. Tesla and Alphabet will kick off the quarterly earnings season for the so-called Magnificent Seven technology megacaps after the closing bell, shedding light on a sector that has driven recent market gains.

The U.S. core personal consumption expenditures index, the Federal Reserve's preferred inflation measure, will be released on Friday. The yield on benchmark U.S. 10-year notes fell 3.5 basis points to 4.225%. "The market is in the show-me-the-money stage where it's about the earnings being delivered," said Wasif Latif, chief investment officer at Sarmaya Partners.

MSCI's global gauge of stocks rose 0.22% to 818.63. On Wall Street, all three major indexes advanced, led by consumer discretionary and financial stocks. The pan-European STOXX 600 index gained 0.13%, aided by a tech rally. Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.32% higher at 567.02. "We’ve had a strong run-up so far this year and a lot of the good news up until now is baked in," Latif added.

U.S. Vice President Kamala Harris will campaign in Wisconsin on Tuesday after securing support from a majority of Democratic National Convention delegates, making her the party's presumptive nominee. The Dow Jones Industrial Average rose 0.20% to 40,495.62, the S&P 500 gained 0.26% at 5,578.98, and the Nasdaq Composite climbed 0.42% to 18,082.47.

The dollar strengthened overall, while the yen rose for a second straight day against the greenback. The dollar index, which measures the greenback against a basket of currencies, gained 0.14% at 104.45, with the euro down 0.33% at $1.0853. The yen strengthened 0.64% against the greenback at 155.99 per dollar.

Crude oil prices fell for a third consecutive session as demand concerns offset expectations for a Fed interest rate cut in September and supply threats from Canadian wildfires. Brent crude futures for September fell 1.8% to $80.92 a barrel, while U.S. West Texas Intermediate crude for September dropped 2.2% to $76.82 per barrel.

Gold prices edged up, with spot gold adding 0.29% at $2,404.61 an ounce. U.S. gold futures gained 0.43% at $2,402.40 an ounce. Bitcoin, which had risen on bets that a potential Trump administration would take a light-touch approach to cryptocurrency regulation, fell 2.16% at $66,676.26.