Earnings Surge Lifts Dow & S&P 500 Amid Investor Caution

The S&P 500 and Dow surged due to strong earnings from major companies, attracting investors to industrials and capital goods, while tech shares lagged. General Motors and Coca-Cola posted significant gains following positive earnings reports. The government shutdown and trade talks add uncertainty, but earnings remain the focal point for investors.

On Tuesday, the S&P 500 and Dow soared as strong corporate earnings drew investors towards industrials and capital goods, diverting attention from tech stocks. However, tech-heavy Nasdaq saw minimal declines.

Corporate earnings are in the spotlight with companies like General Motors, GE Aerospace, and 3M reporting positive outcomes. Despite the encouraging results, with U.S. stock indexes near record highs, maintaining investor enthusiasm may be difficult until the government shutdown concludes and more economic data becomes available.

General Motors boosted its forecast, raising shares by 15.4%, while Coca-Cola's stock climbed 4.1% due to impressive consumer demand. Meanwhile, 3M rose 6.2% owing to a strong full-year forecast. Aerospace and defense firms also upgraded forecasts, benefiting as shares in the sector climbed 1.8%.

(With inputs from agencies.)