### Wall Street Opens Higher Amid Focus on Earnings and Inflation Data

Wall Street's key indexes saw gains at the opening bell on Tuesday, with investors looking ahead to the upcoming third-quarter earnings reports and critical inflation data that could provide clues about the Federal Reserve's future interest rate moves. The S&P 500 increased by 0.38%, while the Nasdaq climbed by 0.5% and the Dow Jones Industrial Average remained relatively flat.

The market turnaround follows a substantial dip on Monday, when all three major indexes fell by around 1%. The drop was attributed to climbing Treasury yields, escalating tensions in the Middle East, and a reassessment of U.S. interest rate expectations. Fiona Cincotta, a senior market analyst at City Index, noted that such a bounce back is not unusual after a significant sell-off, especially in the absence of new data.

Amid this backdrop, the two-year Treasury yield has slightly pulled back from Monday's peak, whereas the yield on the benchmark 10-year note remains above 4%. Strong economic data from the previous week led investors to scale back their expectations for rate cuts.

In the commodity markets, shares in the energy sector declined by over 2%, driven by a fall in oil prices after Monday's rally. In contrast, metal prices dipped as optimism waned over China's stimulus measures, pushing some related stocks to an over two-week low.

Federal Reserve Governor Adriana Kugler indicated her support for further interest rate cuts if inflation continues to ease. Meanwhile, other Fed officials, including Raphael Bostic, Susan Collins, and Philip Jefferson, are scheduled to speak later in the day.

Looking ahead, traders are keenly awaiting consumer price index data due on Thursday and the kick-off of the third-quarter earnings season on Friday by major banks. The S&P 500 is expected to post a 5% earnings growth rate for Q3, according to estimates by LSEG.

As for market breadth, advancing issues slightly outnumbered decliners on the NYSE, with a 1.03-to-1 ratio. However, on the Nasdaq, decliners outpaced advancers by a 1.04-to-1 ratio. The S&P 500 recorded 13 new 52-week highs and one new low, while the Nasdaq Composite saw 21 new highs and 36 new lows.