Stocks have shown a strong move to the upside during trading on Wednesday, with the major U.S. stock indexes all moving higher following the mixed performance seen in the previous session. The Nasdaq has shown a particularly strong upward move following the steep drop seen on Tuesday.
The major averages have given back ground in recent trading but remain positive. The Nasdaq is up 383.10 points or 2.2 percent at 17,530.52, the S&P 500 is up 77.95 points or 1.4 percent at 5,514.39 and the Dow is up 83.92 points or 0.2 percent at 40,827.25.
The rally on Wall Street partly reflects a positive reaction to some of the latest corporate earnings news from companies like Advanced Micro Devices (AMD).
Shares of AMD are surging by 5.5 percent after the chipmaker reported second quarter results that exceeded analyst estimates on both the top and bottom lines.
Coffee giant Starbucks (SBUX) is also seeing significant strength after reporting fiscal third quarter earnings in line with estimates and maintaining its full-year guidance.
Shares of DuPont (DD) have also surged after the chemical giant reported better than expected second quarter results.
On the other hand, shares of Microsoft (MSFT) have moved to the downside after the tech giant reported quarterly earnings and revenue that beat expectations but disappointing cloud computing results.
The upward momentum on Wall Street also comes as traders look ahead to the Federal Reserve’s monetary policy announcement this afternoon.
The Fed is widely expected to leave interest rates unchanged, but the accompanying statement could have a significant impact on the outlook for the central bank’s next decision in September.
With Fed officials repeatedly saying they need “greater confidence” inflation is slowing before cutting rates, recent inflation data has led to optimism about a September rate cut.
According to CME Group’s FedWatch Tool, there is currently an 87.7 percent chance the Fed will lower rates by a quarter point in September and an 11.9 percent chance of a half point rate cut.
Sector News
Semiconductor stocks have shown a substantial rebound on the heels of the upbeat AMD earnings, with the Philadelphia Semiconductor Index soaring by 5.0 percent after ending the previous session at its lowest closing level in over two months.
Considerable strength is also visible among computer hardware stocks, as reflected by the 2.7 percent surge by the NYSE Arca Computer Hardware Index.
Gold stocks have also rallied amid an increase by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 2.2 percent.
Networking, retail and oil service stocks are also seeing notable strength, moving higher along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved sharply higher during trading on Wednesday. Japan’s Nikkei 225 Index jumped by 1.5 percent, while China’s Shanghai Composite Index surged by 2.1 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index has climbed by 0.5 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both up by 1.0 percent.
In the bond market, treasuries are extending the upward move seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.3 basis points at 4.107 percent.
Business News
U.S. Stocks Move Sharply Higher Ahead Of Fed Announcement
2024-07-31 14:58:05
