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U.S. stocks rose on Wednesday, with the S&P 500 index closing at another all-time high as upbeat tech earnings led by Netflix fueled hopes that the record rally will continue.
The S&P 500 (^GSPC) rose 0.6% after hitting a new closing high on Tuesday, while the Dow Jones Industrial Average (^DJI) rose about 0.4%, or nearly 150 points, showing signs of a return to gains. showed.
Tech stocks outperformed and the Nasdaq Composite Index (^IXIC) rose about 0.9% after Netflix’s (NFLX) quarterly profit highlighted consumer health. The streaming giant’s stock rose nearly 10% in early market trading after a much bigger-than-expected surge in subscribers.
Meanwhile, explosive updates from chip gear maker ASML (ASML) and software maker SAP (SAP) boosted optimism for a resurgence in the chip industry and an AI-powered technology boom.
Tesla (TSLA), which trails the Magnificent Seven, was the highlight of Wednesday’s corporate reporting procession, with a focus on deliveries as the EV maker faces a tough market and formidable rivals in China. ing. Technology giant IBM is also a candidate.
While earnings are in the spotlight, debate continues over when the Federal Reserve will cut interest rates.
The latest information on U.S. manufacturing and services activity was strong, with economic output hitting a seven-month high as data supports expectations. This comes ahead of the release of fourth-quarter GDP initial figures on Thursday and the release of Fed-supported PCE inflation data on Friday.
read more: Impact of the Fed’s interest rate hike suspension on bank accounts, CDs, loans, and credit cards
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US economic output reaches seven-month high
Economic output in January was the highest in seven months.
S&P Global’s preliminary U.S. composite PMI, which tracks activity in both the services sector and manufacturing, came in at 52.3 in January, up from 50.9 in December and above economists’ expectations of 51.0.
S&P reported that business confidence reached a 20-month high, while prices, a measure of inflation, rose at the slowest pace since May 2020. The manufacturing economy index rose to 50.3 from 47.9 the previous month, marking the largest increase. According to the services sector of S&P’s report, the index stood at 52.9 this month, up from 51.4 in December.
When these indices exceed 50, it represents expansion in this sector. A reading below 50 indicates shrinkage.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “Preliminary PMI data suggest an encouraging year for the U.S. economy, with businesses reporting a notable acceleration in growth along with a sharp decline in inflationary pressures. “It shows the start of the.” release.
Source: S&P Global -
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