US stocks climb as earnings season comes in focus

US equities increased dramatically as a result of investors focusing on this week’s deluge of earnings reports and financial results rather than indications that China’s economic recovery is still far off.

The Dow Jones Industrial Average increased by 0.2% and the S&P 500 increased by 0.4%. The tech-heavy Nasdaq Composite increased by 0.9%. The tone of the market was affected earlier in the session by China’s poor GDP figures, which raised doubts about the likelihood of a recovery in the world’s second-largest economy. However, as investors prepared for the start of the earnings season in the coming days, markets ended on a more upbeat note.

The quarterly results of several high-profile companies are coming, including Tesla’s on Wednesday. After good reports from JPMorgan (JPM) and Wells Fargo helped lift equities on Tuesday, investors will be watching developments from Bank of America and Goldman Sachs.

Earnings for S&P 500 firms are anticipated to decline 7% on average in the second quarter.

Despite the fact that China’s economic data was dismal, stocks ended the day higher as investors braced themselves for a strong earnings week. The Dow Jones Industrial Average increased by 0.2% and the S&P 500 increased by 0.4%. The tech-heavy Nasdaq Composite increased by 0.9%.