Tech stocks push Wall Street to close sharply higher – zimo News


The New York Stock Exchange closed sharply higher on Wednesday, driven by the Nasdaq and encouraging corporate results, a day after tensions with China added to the pressure.

The Dow rose 1.29% to 32,812.50, the tech-heavy Nasdaq gained 2.59% to 12,668.16 and the S&P 500 rose 1.56% to 4,155.17, according to final closing results.

Analysts at Schwab said stocks were “moving higher on better-than-expected earnings and economic data.”

Cresset Capital’s Jack Ablin made the same comment, arguing that many companies were doing “better than expected.”

In addition, he said, recent comments from the U.S. central banker “suggest that they are trying to raise rates early to keep inflation in check.”

“But this is based on the idea that overnight rates may peak in January-February and move lower for the rest of the year,” analysts told AFP, giving investors confidence. Especially since St. Louis Fed President James Bullard assured late Tuesday that the U.S. economy should be able to achieve a “soft landing,” that is, without a severe recession, if the Fed has to “go higher” on interest rates.

– Optimistic Indicators –

In terms of economic indicators, U.S. service sector activity accelerated in July for the first time in four months, according to the professional federation ISM’s barometer.

The index rose to 56.7 percent, up 1.4 percentage points from June. This improvement was unexpected and satisfied the market.

Investors were also relieved after U.S. House Speaker Nancy Pelosi left Taiwan.

According to Taipei, the visit sparked an outcry from Beijing, which considers the island a province and brought 27 military aircraft into Taiwan’s air defense zone.

All S&P sectors except energy ended higher as oil prices fell more than 3% after the OPEC+ meeting and a surprise build in U.S. crude inventories.

But information technology (+2.69%), discretionary spending (+2.52%) – which indicates renewed confidence in the economy – and communications services (+2.48%) led the way.

Electronic payments company Paypal (up 9.25% to $97.92) celebrated after raising its earnings forecast for the year, notably announcing a $15 billion share repurchase program. The group will also cut jobs.

Moderna, the maker of a Covid-19 vaccine also listed on Nasdaq, reported better-than-expected second-quarter results and announced a $3 billion share buyback. Its title closed at $186.49 with a gain of 15.97%.

Large-cap stocks on the Nasdaq were also all smiles, such as Apple (+3.82% to $166.13), Meta (+5.37%) or Amazon (+4%).

Drugstore and pharmacy chain CVS was sought after (+6.30%) after raising its 2022 profit forecast, suggesting that demand for its over-the-counter Covid-19 tests could help curb falling demand for vaccines.

On the other hand, microprocessor maker AMD fell 1.21% after lowering its forecast for the next quarter due to weak demand for PCs.

In the bond market, the yield on the 10-year bond fell slightly to 2.70% from 2.74%. It remained stable at 3.06% for two years.

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