Stocks surged in morning trading on Wall Street Tuesday
as investors continue examining financial reports from companies.

The S&P 500 gained 1% as of 10:24 am Eastern Time
Zone. The Dow Jones Industrial Average rose 343 points or 1% to 34,753. The
Nasdaq rose 1.77% to 13,570.40. 

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Health care companies saw some of the biggest gains.
Johnson & Johnson jumped 3.4% after reporting solid earnings and increasing
its dividend. Several medical equipment makers also witnessed strong gains.
Intuitive Surgical rose 5.8% and Boston Scientific rose 4.5%.

Banks also gained ground with rising Treasury yields,
which allows them to charge higher interest on loans. The yield on the 10-year
Treasury rose to 2.91% from 2.85% late Monday. Bank of America gained 1.9%.

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Energy stocks pulled the broader market down. US crude
oil prices slid 4.3% and Natural gas prices slipped 8.4%.

Investors are focusing on the latest round of company
reports as more big companies release earnings. Signature Bank rose 5.2% after
beating analysts’ earnings expectations.

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Netflix will report earnings after the market closes on
Tuesday. Railroad giant CSX and Tesla will report their results on Wednesday.
American Airlines and Union Pacific will report their earnings on Thursday.

The latest round of results comes as investors try to
watch how companies and consumers are dealing with rising inflation that has
made everything from food to clothing and gas more expensive.

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The Russia-Ukraine war added to these price pressures.
The International Monetary Fund (IMF) on Tuesday slashed the outlook for the
world economy this year and next, saying that Russia’s invasion of Ukraine
disrupted global commerce and increased uncertainty already heightened by the
coronavirus and its variants.

Soaring inflation has triggered the Federal Reserve and
other central banks to raise interest rates to help reduce inflation’s impact.
The Fed has already announced a quarter-percentage point rate hike and is
expected to hike rates by half-percentage at its next meeting.

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Bond yields have been surging as the market prepares for
higher interest rates. The yield on the 10-year Treasury is at its highest
since late 2018. Rising yields have also been putting pressure on the already
tight housing market as mortgages rates rise and make loans more expensive. The
National Association of Realtors will release its home-sales report for March
on Wednesday.