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US Stocks Advance as Investors Anticipate Key Inflation Data and Earnings Report

Wall Street sees a mild rise as financial shares gain momentum and investors keenly await crucial inflation data and the onset of Q2 earnings.

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Wall Street sign

Wall Street Experiences Uptick Awaiting Inflation Reports and Q2 Earnings

Wall Street experienced a favorable shift on Tuesday afternoon, with U.S. stocks on the rise, largely driven by gains in financial shares. Investors are eagerly awaiting key inflation data and the beginning of the second-quarter earnings announcements. Investors hope to discover whether inflationary pressures are decreasing, and if the Federal Reserve is close to halting its interest rate hikes. Consumer price data in the U.S. is scheduled for release on Wednesday, followed by a producer prices report on Thursday.

Financial Shares See Growth, with JPMorgan Leading the Charge

Shares of JPMorgan Chase & Co (NYSE: JPM) saw a 1.5% increase after Jefferies improved its rating of the stock to "buy", ahead of the bank's quarterly results release on Friday. As JPMorgan and other large banks release their results later this week, they are expected to unofficially kickstart the second-quarter reporting period. This development has seen the S&P banking index rise by 1.4%.

Earnings and Q3 Expectations to Drive Market Trend

Senior portfolio strategist at Ingalls & Snyder in New York, Tim Ghriskey, said that the market is diversifying ahead of earnings. He added that investors are closely watching the influx of data, along with Q3 predictions. Market guidance provided in the upcoming earnings calls from various companies will also play a crucial role. The S&P 500 has reported a 15% rise for the year, with the tech sector showing an impressive 39% increase.

Tech Giants Amazon and Salesforce Enjoy Positive Traction

Key stocks such as (NASDAQ: AMZN) and Salesforce (NYSE: CRM) saw favorable movements. Amazon shares were up by 0.7% amidst their ongoing 48-hour "Prime Day" shopping event. Salesforce also reported a 3.1% increase after the cloud services company announced it would hike prices for some of its products and marketing tools, a first in seven years.

The overall market trend was positive, with advancing issues on the NYSE outnumbering declining ones by a 2.79-to-1 ratio. On the Nasdaq, advancers were favored at a 1.53-to-1 ratio. The S&P 500 posted 45 new 52-week highs and one new low, while the Nasdaq Composite registered 81 new highs and 34 new lows.