Dow Jones Rises 800 Points, US Markets Rebound Ahead of Q1 Earnings

Dow Jones Rally: The Wall Street witnessed a bounce back on Tuesday's trading session as investor sentiment remained hopeful ahead of Q1 earnings. The Dow Jones Industrial Average soared by over 760 points or nearly 2%. The S&P 500 index and Nasdaq followed suit and surged over 2% and 2.26% respectively during the initial trading hours.

Major companies, including Tesla, Boeing and Google's parent Alphabet, will announce their first-quarter earnings this week. The NYSE Fang+ index, which tracks the share price of top US tech firms, also experienced a sharp rise of 270 points or 2.5% and was trading around the 11,122 level mark.

While the earnings season has just started, it has been a 'so far, so good' situation for investors with companies beating Wall Street estimates. Only 12% of S&P 500 firms have reported their Q1 earnings for this year, as of now. Out of these companies, more than 70% have reported better-than-expected actual EPS, as per Factset Insight. So far, earnings have come in 6.1% above estimates and if the actual growth rate surges by 7.2% for the quarter, it will mark the seventh consecutive quarter of YoY (year-on-year) earnings growth for the S&P 500 index.

However, the earnings are still below the five- and 10-year averages, according to FactSet.

Tech Stocks in Focus

Tesla will be the latest tech company to announce its results today, post-market hours. All major tech stocks will remain in focus, as their shares have witnessed a sharp downtrend this year. Even the darling stock of Wall Street, Nvidia, failed to keep investors hopeful after recording a year-to-date decline of 30% in share price on Nasdaq.

Meanwhile, Trump's aggressive words against the Federal Reserve chairman Jerome Powell have further added to the overall uncertainty around global macros owing to trade tensions. Trump called Powell "Mr. Too Late" and a " Major Loser" as the central bank has stayed away from cutting interest rates at a time when other major economies have already started the same. He also said that there is "virtually no inflation" present in the economy.