The New York Stock Exchange finished trading Wednesday sharply higher on the Nasdaq and encouraging corporate results after lowering the day before as tensions with China escalated.
The Dow Jones index added 1.29% to 32,812.50 points, the high-tech Nasdaq jumped 2.59% to 12,668.16 points and the S&P 500 jumped 1.56% to 4,155.17 points, according to the final closing results. .
Schwab analysts said the stock “rebounded on stronger-than-expected earnings and economic data.”
Same comment for Cresset Capital’s Jack Ablin, who believes that many companies performed “better than expected”.
In addition, he said, recent comments by US central bankers “show that they are trying to accelerate the increase in interest rates in order to control inflation.”
“But this is based on the idea that overnight rates are likely to peak in January-February and be lower for the rest of the year,” an AFP analyst said, giving investors confidence. Especially since James Bullard, the president of the St. Louis Fed, assured Tuesday night that if the Fed had to “raise” rates, the US economy should be able to maneuver a “soft landing.” that is, without a significant decline.
– optimistic indicator –
On the economic front, growth in US service-sector activity accelerated in July for the first time in four months, according to the ISM professional federation’s barometer.
The index rose to 56.7%, up 1.4 percentage points from June. This improvement was unexpected and pleased the market.
Investors also felt relieved after Speaker of the US House of Representatives Nancy Pelosi left Taiwan.
According to Taipei, this visit provoked violent protests from Beijing, which considers the island a province and introduced 27 military aircraft into Taiwan’s air defense zone.
All sectors of the S&P closed higher, except for energy, as oil prices fell more than 3% after the OPEC+ meeting and the unexpected rise in U.S. crude inventories.
But the sectors of information technology (+2.69%), discretionary spending (+2.52%), which showed renewed confidence in the economy, and communications services (+2.48%) led the way.
Electronic payments firm Paypal (+9.25% to $97.92) celebrated raising its full-year earnings forecast and, above all, announced a $15 billion share buyback program. The group will also cut staff.
Covid-19 vaccine maker Moderna, also listed on Nasdaq, posted better-than-expected second-quarter results and also announced a $3 billion share buyback. His title ended with a 15.97% jump to $186.49.
Nasdaq big caps were also the same smiles as Apple (+3.82% to $166.13), Meta (+5.37%) or Amazon (+4%).
Pharmacy and drugstore chain CVS gained in demand (+6.30%) after it raised its 2022 earnings forecast, showing that demand for OTC Covid-19 tests helped prevent a drop in vaccine demand.
Shares of microprocessor maker AMD, on the other hand, tumbled 1.21% after lowering its guidance for the next quarter due to lower demand for PCs.
In the bond market, the yield on 10-year bonds fell slightly to 2.70% instead of 2.74%. These two years have remained stable at 3.06%.