US equity markets opened higher on Tuesday, driven by a combination of softer-than-expected inflation data and robust quarterly results from five of the country’s largest banks.
The positive macroeconomic backdrop provided a counterweight to severe selling pressure in the technology sector, where IBM shares collapsed 23% in US trading.
This marks the most significant single-day decline for the company since the 1987 market crash, triggered by a preliminary profit warning for the second quarter that revealed adjusted earnings well below consensus estimates.
The broader market rally reflects investor relief that inflationary pressures are easing, potentially supporting a more dovish stance from the Federal Reserve.
The strong earnings from major financial institutions further bolstered sentiment, suggesting resilience in the banking sector despite ongoing economic uncertainties.
While the indices gained ground, the divergence in performance highlights the selective nature of current market dynamics, with investors rewarding financials and macro-positive data while punishing companies with deteriorating fundamentals.