Stocks inch higher, adding to early January gains

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Stocks rise Tuesday as traders mull prospects of higher rates

Stocks rose on Tuesday, continuing a solid start to 2023, as investors bet inflation is trending lower and grew increasingly interested in beaten-down technology stocks like Tesla.

Atlanta Fed President Raphael Bostic said Monday that interest rates should rise above 5% and stay there for a "long time." Meanwhile, San Francisco Fed President Mary Daly said the central bank should continue raising rates, albeit at a slower pace. Treasury yields rose slightly on Tuesday. "You've probably got something just under a trillion dollars of excess demand in U.S. stocks," Jones said Tuesday on CNBC's"Where is the selling going to come to offset that that demands coming from buybacks, from the corporate line items, from some combination of buybacks and M&A? That's a significant amount. Ceteris paribus, everything being the same, the stock market would be up 7% or 8% this year.

 

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