In a relatively calm trading session on Wall Street, U.S. stocks maintained stability on Tuesday after experiencing some sharp swings in recent sessions. The S&P 500 rose by 0.3% during afternoon trading, following a strong three-day winning streak. At 1:34 p.m. Eastern time, the Dow Jones Industrial Average gained 79 points, or 0.2%, and the Nasdaq composite increased by 0.3%.

Kenvue, the company behind well-known brands such as Band-Aids and Tylenol, saw a significant boost as their stock value rose by 6.6%. This positive momentum followed their successful quarter, where Kenvue exceeded analysts' expectations for both profit and revenue.

In contrast, The Walt Disney Co. experienced a decline in stock value, dropping by 9.8%, despite reporting stronger results for their latest quarter than anticipated by analysts. Although their revenue fell slightly shy of forecasts, the main concern stemmed from the company's expectation of a softening entertainment streaming business in the current quarter.

Analysts highlight that the majority of companies reporting their first-quarter results have been outperforming earnings forecasts. However, market response to these positive earnings has not been as robust as expected. Conversely, companies that fall short of profit expectations have seen their stock prices decline even more significantly the following day, indicating growing skepticism towards the overvaluations in the U.S. stock market.

For stock prices to continue climbing, two factors are crucial: dynamic growth in profits or a decline in interest rates. The latter still remains a possibility, as Federal Reserve Chair Jerome Powell hinted that the central bank is more likely to cut interest rates than to increase them. Additionally, last week's cooler-than-expected jobs report suggests that the U.S. economy can maintain stability without experiencing excessive inflation.

The stock market has recently experienced relief with declining Treasury yields, offering some respite. The yield on the 10-year Treasury dropped to 4.44%, while the two-year yield slipped to 4.81%. However, strategists at Wells Fargo Investment Institute predict that long-term yields are likely to remain high due to expectations of sustained inflation.

On the corporate front, there were several notable stock movements. Crocs, the footwear company, jumped 5.9% following better-than-expected profits and revenue. International Flavors & Fragrances, a maker of food and perfume ingredients, gained 5.1% after reporting strong financial performance and raising its revenue forecast for the year.

However, Lucid Group, an electric-vehicle manufacturer, experienced a 13.3% drop in stock value after reporting a larger loss for the latest quarter than analysts had predicted. Builders FirstSource also faced challenges as their stock plummeted by 19.6%, despite surpassing profit and revenue forecasts. The supplier of building products cited a weakening multi-family housing market and higher mortgage rates as contributing factors.

In global markets, Asian indexes had mixed results, with Seoul and Tokyo seeing gains of 2.2% and 1.6% respectively, while the rest of Asia remained uncertain. Australia's S&P/ASX 200 advanced by 1.4% after the central bank decided to maintain interest rates. European stock indexes also experienced growth.

As investors assess the current market climate, attention remains on future earnings reports and the actions of the Federal Reserve in monitoring inflation and interest rates, which will likely influence the direction of U.S. stocks in the coming weeks.