U.S. stocks charged forward to close a turbulent session higher Tuesday after investors shook off a profit warning from Target that weighed on broader markets in earlier trading.
The S&P 500 rose about 1%, and the Dow Jones Industrial Average gained 264 points, or 0.8%. The tech-heavy Nasdaq advanced roughly 0.9%. The indexes climbed after struggling for direction for much of the day. Meanwhile, the 10-year U.S. Treasury benchmark retreated to dip below 3%.
Target (TGT) was in focus during the morning trade after the retailer slashed its guidance and said it was aiming to trim down excess inventory by offering discounts, canceling orders and reevaluating its expenses – an announcement that comes just weeks after the company shocked investors with a dramatic earnings miss that sent shares down 25%.
Target's stock closed down 2.3%. The warning also weighed on other retail peers as a growing number of companies sound the alarm over the toll of inflation and supply chain imbalances on their margins. Shares of Walmart (WMT) fell 1.2% and Costco (COST) closed just below flat.
Elsewhere in markets, oil topped $120 per barrel, giving a boost to the energy sector. Shares of Exxon (XOM) rose 4.6%, marking the oil conglomerate's biggest intraday gain after analysts at Goldman Sachs and Credit Suisse hiked their price targets the company. The stock topped $100 for the first time since 2014.
Kohl's (KSS) was also in the spotlight after reports Vitamin Shoppe owner Franchise Group is in talks to purchase the retailer for $8 billion. Shares of Kohls surged nearly 10%.
Choppy trading on Tuesday builds on a streak of back-and-forth sessions as investors assess the economic outlook and brace for central bank policymakers to ramp up interest rates in an effort to cool inflation.
"Watching the market, actually fairly calm, as it teeters between inching ahead and pulling back, suggests that until there's a more definitive reading on the inflation front coupled with the Fed's thinking on further rate hikes in September, we can expect this bounce back and forth," LPL Financial Chief Equity Strategist Quincy Krosby said in a note.
All three major indexes closed in the green on Monday, though well off the session’s highs after wavering from a morning rally. The S&P 500 closed up 0.3% after retreating from a jump of more than 1%, the Dow erased a 300-point gain to end just above breakeven, and the Nasdaq climbed 0.4%.
“For now, the market sees a Federal Reserve trying to navigate a painful and bumpy road, yet trying to find a soft exit,” Krosby said. “And the market finds itself between wanting to believe in the rallies but not believing that the Fed can negotiate a soft landing.”
Inflation is top of mind for investors this week, with the Bureau of Labor Statistics’ May Consumer Price Index (CPI) due out Friday. Wall Street will be looking for signs that prices have peaked as it hopes for a pause on monetary tightening in the autumn months.
Outside of Friday’s CPI print, investors face a lighter economic and earnings calendar this week.
4:00 p.m. ET: Stocks log second consecutive up day after turbulent trading
Here's where the S&P 500, Dow, and Nasdaq ended trading after market close:
S&P 500 (^GSPC): +39.11 (+0.95%) to 4,160.54
Dow (^DJI): +264.03 (+0.80%) to 33,179.81
Nasdaq (^IXIC): +113.86 (+0.94%) to 12,175.23
Crude (CL=F): +$1.49 (+1.26%) to $119.99 a barrel
Gold (GC=F): +$12.30 (+0.67%) to $1,856.00 per ounce
10-year Treasury (^TNX): -6.6 bps to yield 2.9720%
10:38 a.m. ET: S&P, Dow, and Nasdaq U-turn from morning losses
Here were the main moves in markets as of 10:38 a.m. ET:
S&P 500 (^GSPC): +10.00 (+0.24%) to 4,131.43
Dow (^DJI): +27.67 (+0.08%) to 32,943.45
Nasdaq (^IXIC): +51.19 (+0.42%) to 12,112.56
Crude (CL=F): +$1.23 (+1.04%) to $119.73 a barrel
Gold (GC=F): +$7.30 (+0.40%) to $1,851.00 per ounce
10-year Treasury (^TNX): -5.3 bps to yield 2.9850%
9:30 a.m. ET: Stocks sink as Target's slashed outlook weighs on markets
Here's where the main indexes opened at the start of Tuesday's session:
S&P 500 (^GSPC): -34.69 (-0.84%) to 4,086.74
Dow (^DJI): -230.58 (-0.70%) to 32,685.20
Nasdaq (^IXIC): -140.86 (-1.17%) to 11,920.51
Crude (CL=F): S$ettlement Date to $N/A a barrel
Gold (GC=F): +$1.20 (+0.07%) to $1,844.90 per ounce
10-year Treasury (^TNX): -3.5 bps to yield 3.0030%
7:30 a.m. ET: Stock futures fall as Target issues profit warning
Here were the main moves in futures trading ahead of Tuesday's open:
S&P 500 futures (ES=F): -36.75 (-0.89%) to 4,083.75
Dow futures (YM=F): -259.00 (-0.79%) to 32,653.00
Nasdaq futures (NQ=F): -142.50 (-1.13%) to 12,462.50
Crude (CL=F): -$0.61 (-0.51%) to $117.89
Gold (GC=F): +$9.70 (+0.53%) to $1,853.40 per ounce
10-year Treasury (^TNX): +8.1 bps to yield 3.0380%
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc