Damien J. by Trois
Shares rose marginally on Wall Street on Wednesday as the market regained its footing after a sharp fall the day before.
The S&P 500 was up 0.3% as of 1:15 p.m. The Dow Jones Industrial Average rose 111 points, or 0.3%, to 34,411 and the Nasdaq fell 0.1%.
A mix of health care companies and companies focusing on consumer products took the lead.
Technology stocks rose after leading the market’s decline the day before. Much of that pressure came from bond yields scaring investors. The high returns have forced investors to reevaluate whether the prices for stocks, especially technology companies, are too high, as it makes their prices seem expensive.
Apple grew 1% and IBM 1.2%.
Bond yields stabilized and took some pressure off investors who had been watching them rise sharply over the past week. The yield on the 10-year Treasury, used to set interest rates on several types of loans, stood at 1.53% late Tuesday.
Markets in Asia fell mostly while those in Europe gained.
The broader market is still on its way to a disappointing September. The benchmark S&P 500 is headed for a 3.5% loss and its first loss month since January. Investors have spent much of the month reviewing a mixed batch of economic data showing the impact of COVID-19 and the highly contagious delta variant on consumer spending and recovery in the job market.
Investors are still watching the Federal Reserve closely to see how a slowdown in economic growth will affect the pace of its plan to ease its extraordinary support for the economy. The central bank has said it plans to eventually reduce bond purchases which have helped maintain low interest rates.
Wall Street is also preparing for the next round of corporate earnings in the next few weeks. Investors will get a more detailed look at how supply chain problems and high costs are affecting corporate finance.
A wide range of companies have been warning investors about the impact of inflation on costs and profits. Nike, Costco and FedEx are among those that cited material costs, shipping delays and labor problems as concerns.
Sherwin-Williams became the latest company to warn that higher raw material costs would hurt profits. The stock gained 1.5% as investors read ahead with the announcement, but it’s still down nearly 8% from its all-time high of $308.70 on Sept.
Investors are still trying to figure out how persistent rising inflation will be as the economy works, and eventually recovers from the pandemic. The Fed has said higher inflation will likely be temporary and linked to an economic recovery, but more companies have indicated they expect higher costs.