Stocks on Wall Street extended their gains on Wednesday, as investors review a series of mostly encouraging quarterly earnings from several large companies.
The S&P 500 it rose 1.6%, to a nearly two-month high. The nasdaq rose 2.59% and the dow jones gained 1.28 percent.
The indices have more than recovered the losses from earlier in the week. The companies technologicalthe retailers and the companies of communications They were some of the biggest winners. Only the values of the sector energetic fell, dragged down by lower oil prices.
The values of the small companies they also gained ground, propelling the Russell 2000 1.4% higher.
Investors celebrated a report on the sector of the services, which makes up most of the US economy. The sector grew faster than expected in July, according to the Institute for Supply Management.
“This is one more proof that the economy is resisting”said Jeff Buchbinder, equity strategist at LPL Financial. “Right now, we have a combination of evidence that inflation is coming down.”
The 10-year Treasury yield it rose to 2.75% from 2.73% on Tuesday.
Profits remain in the spotlight this week, as investors analyze the latest company results and statements to better understand how inflation is affecting businesses and consumers.
The prices of Petroleum fell after OPEC’s decision to increase production in September at a much slower pace than in previous months. US crude fell 4% to $90.66 a barrel, while Brent crude, the international standard, was 3.7% lower at $96.78 a barrel.
Markets are also keeping an eye on possible economic fallout from China following US House Speaker Nancy Pelosi’s visit to Taiwan.. China claims self-governing Taiwan as part of its territory, and has banned imports of citrus Y fish frozen Taiwanese in retaliation for Pelosi’s visit. But he has avoided disrupting the flow of computer chips and other industrial products, a move that could rock the global economy.
The next data on the working market they could help investors determine how the Federal Reserve will move forward with its interest rate policy, which has been aggressive in an effort to try to curb inflation. Figures for last week’s jobless claims will be released on Thursday, and on Friday the government will release its July jobs report.
“Expectations for Fed rate hikes may have become too aggressiveBuchbinder said. “We don’t know if we’ll get a pause by the end of the year, but there’s a decent chance we’ll get a pause signal by the end of the year.”
(With information from AP)