NEW YORK ( Associated Press) – Shares gained ground in early Wednesday morning trading on Wall Street after a huge sell-off in tech stocks a day earlier. This is the latest turmoil for the market as traders prepare for more earnings reports from major US companies this week.
The S&P 500 was up 1% as of 11:39 a.m. after initially shifting between gains and losses. The Nasdaq rose 0.9% and the Dow Jones Industrial Average rose 312 points, or 0.9%, to 33,562.
It has been a volatile week for major indices, reaching a strong end late Monday, only to be bearish on Tuesday.
Technology stocks have been the key driver through most of the week’s volatility. Many companies in this sector have pricey stock prices that push the market up or down with greater force.
Big tech companies posted some of the biggest gainers on Wednesday. Software giant Microsoft rose 6.5% after reporting strong profits for its most recent quarter. payment processing giant visa Profits jumped 8.8% after reporting a jump in spending on the company’s well-known credit and debit card networks.
Big communication companies are also reporting their latest results. Google’s parent company AlphabetAfter recording its slowest quarterly revenue growth since 2020, it slipped 3.3%.
Facebook parent, the meta platform, is on deck to report its results later on Wednesday. Social media company Twitter and iPhone maker Apple will announce their results on Thursday.
Investors were also focusing on income from industrial companies and various retailers. Boeing Wall Street declined 7.5% after reporting worse-than-expected losses. Chipotle rose 1% after reporting solid financial results.
Internet retail giant Amazon will present its results on Thursday.
The latest round of earnings comes amid concerns about rising inflation and plans by central banks to raise interest rates to offset the impact of higher costs on businesses and consumers. Investors are watching closely to see how companies have fared amid supply chain problems and high costs, assessing how consumers are dealing with higher prices for everything from food to clothing and gas. Huh.
The US Federal Reserve is set to aggressively raise rates as it intensifies its fight against inflation. The Fed chairman has indicated that the central bank may raise short-term interest rates by twice the normal amount in upcoming meetings beginning next week. It has already raised its key overnight rate once, the first such increase since 2018.
Bond yields typically keep rising throughout the year as investors prepare for higher rates. The yield on the 10-year Treasury rose to 2.80% from 2.77% late Tuesday.
Wall Street remains focused on inflation path amid Russia’s war against Ukraine and threats from the virus pandemic.
Natural gas prices in Europe rose 24% over the previous day and the euro weakened after Russia cut supplies. For Poland and Bulgaria. Natural gas and oil prices were already rising as the pandemic eased and demand soared, but the Russian invasion of Ukraine has added to the rise in prices. Crude oil and natural gas prices have jumped so far in 2022 and have made gasoline and heating more expensive for consumers.
Strict lockdown measures in China Concerns about slowing economic growth have also increased due to the damage done to the world’s second largest economy. Shanghai, home to the world’s busiest port, and suspension of access to other industrial cities including Changchun and Jilin in northeast China has disrupted the flow of industrial goods.