According to final results at the close, the Dow Jones index ended up 2.43% at 31,827.05 points.

The tech-heavy Nasdaq gained 3.11% to 11,713.15 points, while the S&P 500 gained 2.76% to 3,936.69 points.

US stocks ended "firmly higher as Wall Street priced in a flurry of corporate earnings reports," Wells Fargo analysts said, also pointing to the greenback's pullback.

"The US dollar eased partly on a stronger euro, boosted by speculation that the ECB could raise rates by 50 basis points more," they said.

For Jack Ablin of Cresset Capital, the drop in the dollar was indeed "good news" for the stock market.

Around 8:00 p.m. GMT, the euro gained 0.87% against the greenback at 1.0231 dollars for one euro against 1.0143 the day before.

"It looks like the ECB is going to be more aggressive. I think that's been part of the 'Wall Street' enthusiasm because the greenback might stop going up as much as it has," the analyst told AFP while the US currency has climbed some 13% since the start of the year.

The decline in the dollar "was fueled by a small change in monetary policy between the ECB and the Fed", further explained the analyst.

The European Central Bank is indeed joining the march of the American Federal Reserve by planning a monetary tightening on Thursday, the first in more than a decade, while the Fed has already been tightening its monetary policy since the spring.

A host of corporate results have also interested investors, "even if we have to wait for news from other sectors before drawing a conclusion," said Mr. Ablin.

All sectors in the green

Mega-cap stocks like Apple (+2.67%) and Google (+4.29%) have regained momentum after their plunge on Monday, prompted by reports that the apple firm would slow hiring, fearing a slowdown in activity.

Twitter rose 2.71% as the legal tussle with Elon Musk began with an initial hearing that set the start of a trial in October.

The social network wants to force the boss of Tesla (+ 2.07%) to honor his commitment to acquire it for 44 billion dollars.

On the results front, Netflix announced after the market closed a stronger than expected quarterly net profit per share and above all a lower loss of subscribers (nearly a million against more than 2 million expected).

If its turnover increased to 7.97 billion dollars, it was however displayed below expectations.

Netflix's stock, which closed up 5.61%, was still up nearly 8% in electronic trading after the close.

Among the announcements of quarterly accounts, the American laboratory Johnson & Johnson (-1.46%) unveiled second quarter figures above expectations.

IBM (-5.25%) complained about the strength of the dollar in the second quarter despite better than expected results announced Monday at the close.

The eleven sectors of the S&P finished in the green, communication services (+3.63%) and industrial stocks in the lead (+3.58%).

the energy sector also climbed by more than 3% while the barrel of black gold enjoyed a fourth session increase.

Investors were undeterred by gloomy data in the property market, which is very sensitive to rising interest rates, where housing starts in June fell 2% to a nine-month low. .

"There is a chance that we will have a recession by the middle of next year, maybe even we are right now," said Jack Ablin.

"But I believe investors are ready to look beyond the monetary tightening cycle and into the year after," the analyst said.

© 2022 AFP