Wall Street rises on rising banks and tech

Wall Street’s major indexes surge as strong earnings from Goldman Sachs spark hopes that upbeat corporate reports will help ease market fears of a possible recession from rising inflation and interest rates. Did.

Goldman Sachs Group surged 4.58% after reporting a smaller-than-expected fall in quarterly earnings due to a slowdown in investment banking.

“The sluggish economy remains strong and rising borrowing costs, which are pushing up net interest income, are acting like a parachute for banks,” said Guido Petrelli, founder and CEO of Merlin Investor. It seems to be fulfilling.” .

The investment bank, which is restructuring its operations into three units, closed earnings from a large US bank on a broadly positive note, although several lenders have lowered their loan loss reserves in anticipation of difficult times ahead. raised.

“The main focus has been on how much of the fall has been to understand if the Fed’s soft-landing attempt is actually manageable or if we are about to enter a deep and unstoppable recession,” Petrelli said. ” he said.

All three major US stock indices have fallen more than 12% in the past two months as investors fear the US Federal Reserve’s inflation war will drag the economy down. .

Shares of Johnson & Johnson fell 0.29% after saying the healthcare conglomerate may be forced to cut jobs in anticipation of a slowing economy.

Economic data continue to point to a possible recession, but the latest data show U.S. factory output rose in September, suggesting the manufacturing sector remains reasonable despite higher interest rates. It shows that you are maintaining your footing.

Analysts now expect S&P 500 earnings to rise just 2.8% from a year ago, well below the 11.1% rise expected in early July, according to Refinitiv data. .

Meanwhile, according to a report, rating agency Fitch has been set to cut its US growth forecasts for this year and next, warning that Fed rate hikes and inflation could push the economy into a 1990s-style recession.

In early trading, the Dow Jones Industrial Average rose 539.37 points (1.79%) to 30,725.19, the S&P 500 rose 66.76 points (1.82%) to 3,744.71, and the Nasdaq Composite rose 203.62 points (1.91%). Cent, 10,879.42.

The S&P 500’s 11 major sector indices were all up, with Cyclical Finance and Materials each up 2.0%.

The S&P 500 Banks Index rose 2.81%.

Nasdaq maintains decline in benchmark 10-year Treasury as MegaCap Technology and other growth companies including Apple, Metaplatform, and Nvidia rise between 2.30% and 1.99% led the rise.

Microsoft Corp rose 0.97% after reports it laid off less than 1,000 employees this week, making it the latest U.S. tech company to lay off or slow down hiring amid the global economic slowdown. rice field.

Netflix was 0.68% higher than reported earnings after the market closed.

Gainers outnumbered losers by a ratio of 8.42 to 1 on the NYSE and 5.40 to 1 on the Nasdaq.

The S&P index hit three 52-week highs and one new low, while the Nasdaq posted 45 new highs and 24 new lows.

Wall Street rises on rising banks and tech

Source link Wall Street rises on rising banks and tech

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