US stock indexes rose on Wednesday, pushing the S&P 500 towards an all-time high for the fourth straight time, after a well-received batch of earnings showed companies remained in good shape ahead of the Federal Reserve's monetary policy meeting next week. .
How to trade stock indices
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The S&P 500 SPX added nearly 33 points, or 0.7%, to 4,897.
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The Dow Jones Industrial Average rose 122 points, or 0.3%, to 38,027 points.
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The Nasdaq Composite Index rose 166 points, or 1.1%, to 15,592 points.
On Tuesday, the Dow Jones Industrial Average fell 0.3% to 37,905.45, the S&P 500 rose 0.3% to 4,864.60, and the Nasdaq Composite rose 0.4% to 15,425.94.
What drives the markets?
Technology stocks led Wall Street higher again on Wednesday. netflix nfl x,
It jumped more than 11% after strong results from the streaming giant, which got the tech sector's earnings season off to a good start.
With the S&P 500 holding at record levels, some investors believe it has become increasingly important that earnings and forecasts are well received by the market.
“We are very focused on price reactions following reports (which have been muted over the past three quarters) and the trajectory of guidance/earnings revisions as we progress through earnings season,” the team at Morgan Stanley MS said.
Which includes equity strategists Michelle Weave and Michael Wilson. “Our focus will be on earnings revisions across industry groups – in our view, this metric tends to be the best measure of companies' guidance,” they wrote in a note.
Earnings reports remain the focus of traders' attention on Wednesday with technology heavyweights such as Tesla TSLA,
ibm ibm,
and LRCX Research,
Because the results are announced after the closing bell.
be seen: Tesla's key metric is 'under threat'. Wall Street will learn more soon.
Broader support for the market also came from Treasuries, with the yield on the 10-year Treasury note BX:TMUBMUSD10Y up less than one basis point, at around 4.15%.
The benchmark rate appears to have found equilibrium around this level after its fluctuations in recent months, suggesting that investors are becoming more comfortable about inflation, economic growth and the market's pricing in the Fed's policy path.
Investors will be more inclined to “hang in there” until they get new information about the health of the economy and whether the central bank is ready to push the button on interest rate cuts, said Shelby McFadden, investment analyst at Motley Fool Asset Management. .
“It would make sense to me to have cautious optimism [in the markets] Because if you don't have anything negative to hold on to, you don't want to sell early,” McFadden told MarketWatch in an interview.
In US economic data, the US services PMI rose to a seven-month high of 52.9 in January from 51.4 the previous month, while the US manufacturing PMI jumped to a 15-month high of 50.3 this month from 48.2. in December. .
Meanwhile, risk appetite also strengthened after China's central bank increased stimulus by reducing the amount of liquidity banks must hold in reserves, which will provide about $139 billion of long-term capital to the market. The move sparked a second day of sharp gains for the Shanghai Composite Index CN:SHCOMP after its worst daily decline since April 2022 on Monday.
Companies in focus
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shares AT&T company
T,
-3.37%
It fell 2.5% on Wednesday even though the telecom company reported $16.8 billion in free cash flow for last year, higher than its previous increased forecast of about $16.5 billion. -
Abbott Laboratories“EPT,
-3.10%
The stock fell 3.1% as coronavirus test sales continued to decline, even though the health care products company reported fourth-quarter sales that beat expectations. -
shares DuPont de Nemours Company
Dr,
-11.71%
It fell 11.7% and briefly looked headed for its worst day in nearly four years after the materials sciences company issued a profit warning, with demand expected to remain weak at the end of 2023.
Jamie Chisholm contributed.
