Dow surges 500 points as companies post strong earnings and oil prices fall

• US stocks surged on Tuesday as investors digested a wave of corporate earnings results.
• Of the 42 companies that have reported so far, overall profits are beating estimates by a median of 6%, according to Fundstrat.
• Oil prices sank after the IMF cut its global growth forecast due to the economic fallout of Russia's invasion of Ukraine.

US stocks surged on Tuesday as investors continue to digest a wave of first-quarter corporate earnings results.

Of the 42 S&P 500 companies that have reported so far, overall profits are beating estimates by a median of 6% while revenue is beating by 3%, according to Fundstrat. Early Tuesday, Johnson & Johnson reported an EPS beat as its med-tech division saw accelerated growth in the quarter. The healthcare giant also raised its dividend by 6.6%

Oil prices fell more than 5% on Tuesday after the IMF cut its global GDP growth forecasts for 2022 and 2023, as it highlighted Russia's invasion of Ukraine as a "severe setback" to the post-pandemic economic recovery.

Here's where US indexes stood at the 4:00 p.m. ET close on Tuesday:

• S&P 500: 4,462.48, up 1.61%
• Dow Jones Industrial Average: 34,913.01, up 1.46% (501.32 points)
• Nasdaq Composite: 13,619.66, up 2.15%

While many investors are on recession watch as inflation and interest rates surge, Evercore ISI said strong corporate earnings will show that the economy is not headed towards a recession. The firm expects the stock market to continue its rise in 2022 and 2023.

"You think about a year like 1994, which is a lot of the comparison, and actually the last year, the only year in the last 40, when both stocks and bonds were down for the whole year, as they are sitting here in mid April, is that the market just sort of digested it," Evercore's Julian Emanuel told CNBC on Monday.

Federal Reserve official James Bullard said he wouldn't rule out a 75-basis-point interest-rate hike from the US central bank this year, because inflation is "far too high." But he doesn't expect such an increase to take place right away. "More than 50 basis points is not my base case at this point," Bullard said Monday at a virtual event hosted by the Council on Foreign Relations.

Russian oil exports have plunged 25% over the last week, providing Putin with less revenue as he launches a new offensive against Ukraine. The week leading up to April 15 saw roughly $181 million in oil revenue, compared to $240 million the week prior, according to data from Bloomberg.

West Texas Intermediate crude oil fell as much as much as 5.21% to $102.00 per barrel. Brent crude, oil's international benchmark, fell as much as 5.28% to $107.18.

Bitcoin rose 1.94% to $41,496. Ether prices rose 2.42% to $3,113.

Gold fell as much as 1.91% to $1,948.40 per ounce. The yield on the 10-year Treasury added eight basis points to 2.94%.