Sam Boughedda

Investing.com – Stocks rose on Tuesday, as investors absorbed words from Federal Reserve officials that indicated a more aggressive tightening was in the works as the central bank looks to conquer inflation.

All three of the indexes ended higher at the close. Tech stocks helped to boost the recovery. On Monday they closed after Fed Chair Jerome Powell, who surprised the markets by declaring that a greater half-point rise in rates was possible, said so. Normaly, the Fed raises rates in quarter point increments. Last week was the first time that the Fed did so since the pandemic.

The Fed is trying to quash inflation as Russia’s war with Ukraine threatens to exacerbate high energy and commodity prices and rising prices of food and other household essentials. 

President Joe Biden was set to travel to Brussels on Wednesday to meet with allies of the North Atlantic Treaty Organization and European Union to discuss the West’s response to Russia, which continues to bomb civilian targets in Ukraine.

The White House stated Tuesday that more sanctions would likely be issued at NATO’s summit.

It’s a fairly light week for data and earnings. Three things could impact the markets tomorrow:

1. Nvidia Outlook

NVIDIA Corporation (NASDAQ 🙂 announced a number of announcements Tuesday regarding its NVIDIA Drive Orin autonomous vehicle computer. 

Production of the Orin is now underway. The company also showcases new automakers that have adopted the NVIDIA DIVE platform. It also revealed that the automotive pipeline of NVIDIA DRIVE will increase to $11 Billion over the next six-years. Analysts will closely follow the recovery of the chipmaker from the global shortage of chips which impacted production in the automotive industry.

2. Focus on travel stocks

Even though people believed it safe to travel, Covid-19 is spreading quickly to Asia and Europe. This doesn’t bode well for travel stocks. Carnival Corporation (NYSE) already fell short of revenue estimates and earnings per share. Although the shares were flat on the day, investors will probably be keeping an eye out for any changes in the market.

3. Adobe earnings

Adobe (NASDAQ:), beat analysts’ estimates with earnings per share at $3.37 and revenue of $4.26billion. But the shares declined, so Wednesday will be more important. Adobe’s subscription revenue was $3.96 Billion. The product revenue, however, was only $145 million. This is 6.5% less than the year before.

The company expects to achieve a revenue target of $4.34Billion in its second quarter with adjusted earnings per share at $3.30.

–Staff from Investing.com, Reuters contributed to the report.