Stocks rise after tech-led sell-off

US stocks rose on Wednesday in choppy trading, to offset some of their losses after selling sharply the previous day.

The S&P 500 rose 1.4% in afternoon trade, while the Dow Jones Industrial Average added 1.2%, or about 407 points. The Nasdaq Technology Composite Index advanced 1.4%. The gains were broad-based, with 10 of the 11 sectors rising for the S&P 500. Only the telecom services group lost ground.

The Nasdaq index recorded, on Tuesday, the largest percentage drop in one day since September 2020, while The Dow Jones fell more than 800 pointsas investors Digested earnings reports Weighing concerns about inflation, the potential for rapid monetary policy tightening by the Federal Reserve and the spread of Covid-19 in China.

Major US stock indexes have fallen significantly for the year, with the S&P 500 down 11% and the Nasdaq Composite down 19%. On Tuesday, the Nasdaq closed at its lowest level since December 2020, reversing gains it made in 2021. The Russell 2000 index of small businesses closed Tuesday at its lowest level since December 2020.

Investors said they view Wednesday’s moves higher as a temporary recovery.

“Stocks have been very weak so far this month, and I think investors are seeing some value in current prices,” said Tracy McMillion, head of global asset allocation strategy at Wells Fargo Investment Institute.

Seema Shah, chief strategist at Principal Global Investors, said she sees the next moves in the stock market either sideways or downwards.

Ms Shah said earnings “support the market to some extent, but I don’t think it’s enough to support it higher”. She said her team had moved to a neutral recommendation on the overall equity positions.

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“The risks are just piling up,” she said. “We don’t want to collect pennies in front of the steamer.”

Several major companies are reporting earnings this week, with results due after the closing bell on Wednesday from companies including parent Facebook.

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who this week She agreed to sell herself for $44 billion to Elon Muskto report on Thursday.

Nearly 80% of S&P 500 companies Earnings reported So far, it has exceeded analyst estimates.

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Display data. However, Emily Rowland, chief investment strategist at John Hancock Investment Management, said investors were still focused on a number of broad issues weighing on the markets.

“Markets are mostly focused on some of the macro concerns related to the more hawkish Fed policy, as well as the global growth concerns that are taking place now,” she said.

Many of these concerns I paid the dollar to its highest level in more than two years. The dollar tends to strengthen when the global economy is deteriorating and when investors expect growth in the US to outpace the rest of the world. The higher interest rates in the US also benefit the US currency, as higher interest rates attract investors looking for returns on the currency.

The ICE US dollar index, which measures the currency against another basket, rose 0.9% to 103.23, on course to finish at its highest level since January 2017 and even surpassed the market slump caused by the coronavirus in March 2020. Including on Wednesday, the index rose in All but two of the 18 trading sessions are in April.

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In the bond market, the yield on the 10-year US Treasury rose to 2.786% on Wednesday from 2.773% on Tuesday. Recently, investors have been selling bonds in anticipation of higher interest rates, and benchmark bond yields are still close to the highest level since 2018. Bond yields and prices are moving inversely.

Natural gas prices in Europe rose 3.8% after having earlier jumped more than 20% on Wednesday. These moves came after Russia said it would do so stop the flow of gas Poland and Bulgaria for their refusal to pay the new Moscow terms. Brent crude, the international benchmark for oil prices, fell 0.3 percent to $104.26 a barrel.

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Shares rose 2.9 percent, on course to recoup some of their losses after tumbling 12 percent on Tuesday Biggest drop for a day in more than a year. Twitter shares fell 3% to $48.26, down 11% from the $54.20 share price.

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And Twitter agreed in their agreement to make the company private.


The stock recently fell 8.9%. company Reported $1.24 billion quarterly loss It has once again postponed the expected first delivery of its new 777X twin-aisle jet.


Shares jumped 6.4% after the company reported on Tuesday that revenue and profit rose in the fourth quarter of this year The demand for its cloud services and software continues to rise.

On Tuesday, the Nasdaq Composite posted its biggest one-day percentage drop since September 2020, while the Dow Jones Industrial Average fell more than 800 points.


Michael Nagel/Zuma Press

Chipotle Mexican Grill

Shares added 1.9 percent after the Burrito chain said total revenue increased 16 percent in the past quarter amid rising food, beverage and packaging costs — which the company said was partially offset by increases in menu prices.

Lucid Group

The company’s shares rose 3 percent after the company said late on Tuesday that the government of Saudi Arabia agreed to this Buy up to 100,000 vehicles over 10 years.

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It fell 3.7% after the tech giant reported slower sales growth Amid turmoil in digital advertising spending.

Robinhood Markets

Shares fell 5.1 percent after the online brokerage said it was Laying off 9% of its full-time employees. The company is due to report earnings on Thursday.

European stocks rose, with the Stoxx Europe 600 Index closing 0.7% higher. Major markets in Asia were mixed, with benchmarks in Japan and South Korea down more than 1% and Chinese benchmarks rising.

The CSI 300 index of the largest stocks listed in Shanghai and Shenzhen rose 2.9%, recovering some of its recent losses. In Hong Kong, the Hang Seng Index rose 0.1%.

The recovery came after China on Tuesday reported a level Lowest number of Covid-19 cases in three weeksand President Xi Jinping highlighted the importance of infrastructure for economic growth, with a focus on transportation, energy and water conservation. Stocks of machinery and building materials jumped.

Write to Caitlin McCabe at [email protected], Dave Sebastian at [email protected] and Karen Langley at [email protected]

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