Wall Street ends up sharply, driven by Big Tech

  • CVS down on pessimistic outlook
  • Chipotle and Enphase Energy post strong results
  • All eyes on CPI data due Thursday
  • Indices: Dow +0.86%, S&P 500 +1.45%, Nasdaq +2.08%

Feb 9 (Reuters) – Wall Street surged on Wednesday, closing sharply higher as megacap growth stocks gained momentum on a pause in rising interest rates, and upbeat earnings reports also buoyed stocks. investors to buy.

The benchmark 10-year US Treasury yield fell from multi-year highs reached in the previous session, helping to stabilize sentiment in global markets and boost demand for growth stocks.

Meta Platforms (FB.O) jumped more than 5%, ending four sessions of deep declines that shed nearly a third of its value. The biggest increases in the S&P 500 came from Nvidia (NVDA.O), up 2.2%, and Microsoft (MSFT.O), up 6.4%.

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All 11 S&P 500 sector indices rose, led by a 2.45% jump in real estate (.SPLRCR).

“The bond market is basically saying there’s a cap or a limit to how the Fed is likely to raise rates, and that’s very positive for stocks in general, and growth stocks in particular. which tend to be valued higher,” said Tim Ghriskey. , senior portfolio strategist at Ingalls & Snyder in New York.

Hit by concerns over rising interest, the tech-heavy Nasdaq (.IXIC) has fallen more than 7% so far this year after gaining nearly 21% in 2021. The S&P 500 is down about 4% since the start of the year.

The Dow Jones Industrial Average (.DJI) rose 0.86% to end at 35,768.06 points, while the S&P 500 (.SPX) gained 1.45% to 4,587.18.

The Nasdaq Composite (.IXIC) climbed 2.08% to 14,490.37.

Investors will watch consumer price data on Thursday for clues about the Federal Reserve’s plans to raise interest rates. A surprisingly strong jobs report last week raised concerns about a more aggressive move by the central bank.

A ‘Wall St’ sign is seen above two ‘One Way’ signs in New York August 24, 2015. REUTERS/Lucas Jackson/File Photo

Inflation is expected to hit a four-decade high of 7.3%.

The U.S. economy could be approaching a slower pace of inflation, Atlanta Fed Chairman Raphael Bostic said on Wednesday, although he added that he was still leaning toward a slightly faster pace. increase in interest rates this year. Read more

Of the 316 S&P 500 companies that have reported earnings so far, 78% have exceeded analysts’ expectations, according to data from Refinitiv.

Chipotle Mexican Grill Inc (CMG.N) jumped 10% after beating earnings and sales estimates, while KFC parent Yum Brands Inc (YUM.N) rose 2.2% after sales exceeded estimates. Read more

Enphase Energy Inc (ENPH.O) jumped 12% on upbeat results, boosting other solar stocks, along with SunPower Corp (SPWR.O) and SolarEdge Technologies Inc up 6.6% and 6.9%, respectively.

CVS Health Corp (CVS.N) fell more than 5% after its 2022 earnings forecast fell short of Wall Street expectations. Read more

Advancing issues outnumbered declining ones on the NYSE by a ratio of 2.99 to 1; on the Nasdaq, a ratio of 2.40 to 1 favored advancers.

The S&P 500 posted 40 new 52-week highs and no new lows; the Nasdaq Composite recorded 53 new highs and 56 new lows.

Volume on U.S. exchanges was 10.9 billion shares, compared to an average of 12.3 billion over the past 20 trading days.

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Reporting by Bansari Mayur Kamdar in Bengaluru and Noel Randewich in Oakland, California; Editing by Maju Samuel and David Gregorio

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