U.S. stocks rose on Wednesday following strong profit reports from companies such as Morgan Stanley and United Airlines. The S&P 500 gained 0.5%, recovering from a previous slide, while the Dow Jones Industrial Average set a new record by rising 0.8%. Technology stocks were holding up better after a market-shaking warning from ASML, a Dutch supplier to the chip industry. Despite this, Asian stock markets felt the ripples of ASML’s warning, with chip companies in Japan tumbling.
Energy stocks held steadier, following the price of oil which has fallen back due to diminishing worries of an Israeli attack on Iranian oil facilities. Concerns about weak demand due to China’s slowing economic growth have also impacted oil prices. At the same time, U.S. technology stocks were holding up better after ASML’s warning, with Nvidia seeing a 3.1% gain which contributed to a rise in the S&P 500. However, Asian chip companies experienced losses as a result of the warning.
In Europe, stock indexes were mixed, with the FTSE 100 in London rising after reports of easing U.K. inflation. The Federal Reserve in the U.S. has already begun cutting interest rates, raising optimism for a strong economy without a recession. Global growth expectations saw a significant increase in a survey of global fund managers, leading to a jump in investor optimism. Smaller companies led the way in stock market gains on Wednesday, with the Russell 2000 index of smaller stocks jumping 1.6%.
Overall, the S&P 500 rose to 5,842.47, the Dow gained to 43,077.70, and the Nasdaq composite added to 18,367.08. In the bond market, the yield on the 10-year Treasury fell slightly. The positive news from company earnings, along with optimistic global growth expectations, contributed to the upward movement in U.S. stocks. Investors are hopeful for a strong economy ahead, especially with reports showing the U.S. economy remains stronger than expected.
