Stocks fluctuate amid earnings season and hawkish Fed comments.

The S&P 500 and Nasdaq erased early gains on Tuesday after hawkish remarks from Federal Reserve officials. Investors now almost fully expect a 25-basis-point hike in May and have priced out a rate cut expected as early as July. Major US companies reporting on Tuesday, including Johnson & Johnson, Bank of America, Lockheed Martin, ProLogis, and Goldman Sachs, reported better-than-expected EPS last quarter. The S&P 500 is coming in hot to the first-quarter earnings season, having returned 5% over the past months, and analysts predict continued upside momentum for the index after the kickoff of earnings season, albeit at a moderated pace.