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Dow Jumps 400 Points As Stocks Rebound BECAUSE OF Solid Earnings, Upbeat Economic Data


The currency markets rallied on Wednesday, reversing losses from earlier this week because of stronger-than-expected economic data which helped offset lingering recession fears, even while Federal Reserve officials continue steadily to promise more rate hikes to create down inflation.

Markets surged higher amid renewed optimism concerning the economy, which offset recession fears.

Seth Wenig/Associated Press


Stocks rebounded after back-to-back losing sessions earlier this week: The Dow Jones Industrial Average was up 1.3%, over 400 points, as the S&P 500 rose 1.6% and the tech-heavy Nasdaq Composite 2.6%.

Markets got a lift following a surprise rebound in the U.S. services sector in July, with the ISM non-manufacturing purchasing managers index rising to a reading of 56.7above 55.3 last month and 54 expected by economists.

Investors also cheered comments from St. Louis Federal Reserve President James Bullard, who told CNBC on Wednesday that the U.S. economy isn’t in a recession at this time and the Fed will keep hiking rates to create down inflation.

Shares of vaccine maker Moderna surged 16% after reporting strong quarterly profits and announcing $3 billion in share buybacks, while shares of coffee chain Starbucks jumped nearly 5% after similarly beating expectations.

Shares of popular trading app Robinhood, meanwhile, jumped 13%despite the business slashing 23% of its workforcethanks to optimism from Wall Street analysts who cheered the cost-saving measures.

Tech stocks led the marketplace higher on Wednesday, with famous brands Big Tech giants Apple, Amazon and Alphabet all rising by 2% or even more, while consumer stocks also broadly rallied.

Crucial Quote:

It is very impressive that stocks are rising despite Treasury yields continuing to surge for another day in a row, notes Vital Knowledge founder Adam Crisafulli. More hawkish commentary from Fed officials, combined with strong services data, is driving broad gains across S&P 500 sectors, which finished higher apart from energy.


Shares of Hong Kong-based fintech firm AMTD Digital plunged 50% on Wednesday, each day after surging 126%. The under-the-radar company has little revenue but an astronomical valuation greater than $200 billion, prompting some experts to call it the brand new perfect meme stock.

Key Background:

Investors shook off recent concerns about rising U.S.-China tensions, which weighed on markets in the last session. House Speaker Nancy Pelosi (D-Calif.) visited the democratically governed island of Taiwan on Tuesday, a move condemned by China, which claims the territory within its country.

Further Reading:

Heres Why More Fed Officials Are Warning That THE MARKETPLACE Is Getting BEFORE Itself (Forbes)

Dow Falls 400 Points Amid U.S.-China Tensions After Pelosis STOP BY AT Taiwan (Forbes)

AMTD Digital COULD BE THE New Perfect Meme Stock, Loses $70 Billion In Value IN A SINGLE Day After Rising Over 125% (Forbes)

Stocks Fall After Markets Best Month Since 2020, Oil Prices Plunge 5% (Forbes)

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