U.S. equities rebounded Tuesday, with all three major indexes ending in the green. 

The tech-heavy Nasdaq led gains, up about 1.4 percent on the day. 

Leaders were seen in sectors like energy, technology and materials. 

The 10-year Treasury yield fell to 1.74 percent, after a sharp rise since the beginning of this year. 

Meanwhile, oil prices continue to climb, with West Texas Intermediate crude up nearly 4.0 percent, supporting a stronger energy sector overall.

In commodity markets the price of crude oil was up $3.21 to $81.44.

The spot price of gold rose $23.90 to $1,822.70.

All eyes will be on key inflation readings this week, with the U.S. Consumer Price Index out today, and the U.S. Producer Price Index out on Thursday. 

CPI is expected to climb to 7.1 percent, the highest level in decades, while core CPI is expected to come in at 5.4 percent, also a multidecade high. 

This comes on top of strong wage growth figures this past Friday in the nonfarm payrolls report, with average hourly earnings coming in at 4.7 percent year-over-year. 

The ongoing elevated inflation has sparked recent bouts of market volatility, as investors now expect the Federal Reserve to try to battle inflation by raising rates faster and earlier than expected – perhaps as soon as March.  

The fourth-quarter Standard & Poors 500 earnings season will begin this week as well, with large-cap banks expected to report starting this Friday. 

U.S. banks like JP Morgan and Wells Fargo will report earnings on Friday, as the financials sector broadly has been a leading performer in 2022 already, up nearly 5 percent as the market has lagged. 

Overall, fourth-quarter earnings are expected to grow by a solid 21.7 percent, marking the fourth quarter in a row of earnings growth above 20 percent. 

However, earnings growth for 2022 is expected to moderate to about 9 percent from 45 percent in 2021. 

 

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