Wall Street ends sharply higher, lifted by Big Tech - Financespiders

Wall Street ends sharply higher, lifted by Big Tech - Financespiders

Wall Street jumped on Wednesday, closing sharply higher as mega-cap growth stocks powered up thanks to a pause in rising interest rates, and upbeat earnings reports also encouraged investors to buy.

The benchmark 10-year U.S. Treasury yield slipped from multi-year highs hit in the previous session, helping steady sentiment across global markets and boosting demand for growth stocks.

Meta Platforms surged more than 5%, ending four sessions of deep declines that saw it lose almost a third of its value. The biggest boosts to the S&P 500 came from Nvidia, up 2.2%, and Microsoft, up 6.4%.

All 11 S&P 500 sector indexes rose, led by a 2.45% jump in real estate.

"The bond market basically is saying there's a cap or a limit to how much the Fed is likely to raise rates, and that is very positive for stocks in general, and especially for growth stocks that tend to be valued higher," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.

Hit by worries about rising interest, the tech-heavy Nasdaq has fallen more than 7% so far this year after gaining nearly 21% in 2021. The S&P 500 is down about 4% year to date.

The Dow Jones Industrial Average rose 0.86% to end at 35,768.06 points, while the S&P 500 gained 1.45% to 4,587.18.

The Nasdaq Composite climbed 2.08% to 14,490.37.

Investors will watch consumer price data on Thursday for clues on the Federal Reserve's plans to hike interest rates. An unexpectedly strong jobs report last week raised concerns about a more aggressive move by the central bank.

Inflation is forecast at a four-decade high of 7.3%.

The U.S. economy may be nearing a slower pace of inflation, Atlanta Fed President Raphael Bostic said on Wednesday, though he added he is still leaning toward a slightly faster pace of interest rate increases this year.

Of the 316 companies in the S&P 500 that have reported earnings to date, 78% reported above analyst expectations, according to Refinitiv data.

Chipotle Mexican Grill Inc surged 10% after beating profit and sales estimates, while KFC parent Yum Brands Inc rose 2.2% after sales beat estimates.

Enphase Energy Inc jumped 12% on upbeat results, lifting other solar stocks, with SunPower Corp and SolarEdge Technologies Inc up 6.6% and 6.9%, respectively.

CVS Health Corp slipped more than 5% after its earnings forecast for 2022 fell short of Wall Street expectations.

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Advancing issues outnumbered declining ones on the NYSE by a 2.99-to-1 ratio; on Nasdaq, a 2.40-to-1 ratio favored advancers. The S&P 500 posted 40 new 52-week highs and no new lows; the Nasdaq Composite recorded 53 new highs and 56 new lows.


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