STORY: Wall Street ended with gains on Tuesday with Apple, Microsoft and other tech shares leading the market higher, despite a warning from Target that weighed on retail stocks.
The Dow finished 0.8% higher, while the S&P 500 and Nasdaq each ended up about a percent.
But CFRA Research's chief investment strategist Sam Stovall said the recent rise in equities is only a relief rally, and sees more pain ahead in the near term.
“I believe that we are in a rally within a bear market. We likely have further to fall, maybe even to about the 3400 level on the S&P 500 before all is said and done. But because the sell-off started so early in the year, it gives us a greater chance of posting a positive full year, or at least minimizing the sell-off that could have been reported.”
Gains in Apple shares came despite news earlier in the day that the company must change the charging port on iPhones sold in Europe by 2024 after EU countries and lawmakers agreed to a single connector for mobile phones, tablets and cameras.
Shares of Target fell after the retailer said it would have to offer deeper discounts and cut back on stocking discretionary items as inflation continues to upend supply and demand at American retailers.
That dragged down other retail stocks, including Walmart.
But not Kohl's. Shares jumped after news the department store chain entered exclusive talks with retail store operator Franchise Group over a potential sale that would value it at nearly $8 billion.