US stock market: Wall Street jumps with rosy outlooks from companies
US stock market: The Dow Jones Industrial Average (.DJI) rose 323.35 points, or 1 per cent, to 32,717.6, the S&P 500 (.SPX) gained 56.54 points, or 1.42 per cent, to 4,027.81 and the Nasdaq Composite (.IXIC) added 210.16 points, or 1.79 per cent, to 11,926.24.
US stock market: U.S. stocks rallied on Wednesday, with all three major indexes ending up at least 1 per cent as upbeat outlooks from Micron Technology and other companies eased some worries about the health of the economy.
In a sign of potential further strength, the S&P 500 also closed above its 50-day moving average for the first time since March 6, before the onset of the bank crisis, and the CBoe volatility index (.VIX), Wall Street's fear gauge, ended at its lowest level since March 8.
Micron (MU.O) shares shot up 7.2 per cent, boosting the Nasdaq and S&P 500, and leading gains in the PHLX semiconductor index (.SOX), which closed 3.3 per cent higher.
TRENDING NOW
The memory chip maker late Tuesday forecast a drop in third-quarter revenue in line with Wall Street expectations, while it gave a rosy outlook for 2025 with artificial intelligence boosting sales.
Adding to the optimism, Lululemon Athletica Inc (LULU.O) jumped 12.7 per cent after an upbeat annual results forecast.
"We had a couple of good reads into the economy from a couple of companies," said King Lip, chief investment strategist at BakerAvenue Wealth Management in San Francisco.
"Micron is sort of a microcosm of the global economy because their chips go into so many different industries and sectors. If they are optimistic about things in terms of orders, that means the overall economy is doing well."
The bulk of S&P 500 companies begin reporting on the first quarter in mid-April.
Investors are also trying to gauge whether turmoil in the banking system may be subsiding, and what that may mean for Federal Reserve policy.
The Dow Jones Industrial Average (.DJI) rose 323.35 points, or 1 per cent, to 32,717.6, the S&P 500 (.SPX) gained 56.54 points, or 1.42 per cent, to 4,027.81 and the Nasdaq Composite (.IXIC) added 210.16 points, or 1.79 per cent, to 11,926.24.
"People are feeling a little more comfortable with each day that passes since we had the failures," said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
The banking turmoil, which started earlier in March with the collapse of Silicon Valley Bank, caused a swift selloff in the sector shares and fueled jitters about the strength of the economy.
On Monday, regional U.S. lender First Citizens BancShares scooped up the assets of Silicon Valley Bank.
Also read- Top dividend stock: Seven companies that have rewarded investors with up to 2050% dividend recently
Michael Barr, Fed Vice Chair for Supervision, told Congress the scope of blame for Silicon Valley Bank's failure stretches across bank executives.
Investors are awaiting Personal Consumption Expenditures data on Friday for further clues on inflation. The Fed has been raising interest rates to bring down inflation.
Advancing issues outnumbered declining ones on the NYSE by a 3.86-to-1 ratio; on Nasdaq, a 2.15-to-1 ratio favored advancers.
The S&P 500 posted 9 new 52-week highs and no new lows; the Nasdaq Composite recorded 69 new highs and 135 new lows.
Volume on U.S. exchanges was 10.61 billion shares, compared with the 12.73 billion average for the full session over the last 20 trading days.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
07:44 am
S&P 500 ends near flat; utilities drop, focus on rate outlook
Wall Street ends higher as investors digest economic data ahead of inflation report
S&P 500 ekes out slim gain as investors weigh elevated yields
Wall Street pounded as investors grapple with higher rates
Wall Street posts gains as investors eye rate outlook
