4:11pm: Semiconductors gain on Micron results
The Dow closed Wednesday up 323 points, 1%, at 32,718, the Nasdaq Composite added 210 points, 1.8%, to 11.926 and the S&P 500 improved 57 points, 1.4%, to 4,028. The small-cap Russell 2000 index gained 18 points, 1%, to 1,771.
Big Tech enjoyed a banner day. Amazon.com shared rose more than 3%, while Meta and Netflix each added more than 2%.
Semiconductors also shone, with Micron stock rising more than 7% after the chipmaker reported its fiscal second-quarter figures, despite a $1.4 billion inventory write-down. Following the report, Nvidia climbed 2%, and AMD added 1.6%.
12.05pm: Nasdaq up about 12% year to date
US stocks were higher in noon trading, boosted by gains in cryptocurrencies and easing regional banking liquidity fears.
At midday, the Dow gained 234 points to 32,629, while the S&P 500 added 43 points at 4,014 and the tech-heavy Nasdaq rose 163 points to 11,879.
“Everyday that something doesn’t break is a good day,” Yardeni Research president Ed Yardeni said.
“The market keeps waiting for something [else to break] but Silicon Valley Bank was that something,” he added.
Other notable movers included shares of Lululemon Athletica Inc, which climbed more than 12% after the apparel retailer posted better-than-expected 4Q financial results as comparable store sales surged 27%.
9:35am: Tech stocks rebound strongly
US stocks opened sharply higher on Wednesday as banking crisis fears abated.
City Index and FOREX.com market analyst Fawad Razaqzada said technology and bank stocks would be in focus today after these sectors had rebounded sharply across the Atlantic.
“Judging by the rallying equity markets in Europe, investor sentiment remained supported as the turmoil surrounding the global banking sector appears to be contained,” he said.
“On top of this, Alibaba buoyed sentiment in the tech sector after deciding to split into six business units.”
There may also be some bargain hunting for downbeat stocks, an additional reason behind the firmer indices, Razaqzada noted.
Just after the market opened, the tech-laden Nasdaq had added 1.3% at 11,868 points, the S&P 500 had gained 1% at 4,011 points, and the Dow Jones was up 0.7% at 32,634 points.
6:30am: Bond yields settle
Wall Street is expected to open higher as investor sentiment improves on the back of a recovery in bank stocks even as rising bond yields signal the possibility of another interest rate hike.
Futures for the Dow Jones Industrial Average (DJIA) rose 0.7% in pre-market trading, while those for the broader S&P 500 index gained 0.9%, and contracts for the Nasdaq-100 added 0.8%.
Treasuries have given back gains on the back of weaker risk aversion, with the US 2-year yield settling above the 4% mark, noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The rising bond yields put pressure on interest rate-sensitive tech stocks on Tuesday, pushing the Nasdaq Composite 0.5% lower to 11,716 by the close for a second day of losses. The DJIA shed 0.1% to 32,395 and the S&P 500 index dipped 0.2% to 3,971.
“The S&P500 and Nasdaq come under the pressure of rising yields, which means – if banking stress wanes – the US will go back to fighting inflation, and that could mean another 25 basis point hike from the Federal Reserve (Fed) in May,” Ozkardeskaya commented. “For now, activity on Fed funds futures still point at ‘no hike’ as base-case scenario, with around a 60% chance for status quo."
Today sees the release of pending home sales in the US and investors also will be looking to Friday’s release of the personal consumption expenditures price index, also referred to as the PCE deflator, the Fed's preferred measure of inflation, for further insight into the central bank’s next move.
“Today’s US pending home sales for February are expected to show a further retreat but investors will likely look past this data as they focus on Friday’s PCE deflator data, widely known as the Fed's preferred gauge for inflation,” commented TickMill Group market analyst Patrick Munnelly.
“Headline annualised inflation is expected to decline but core inflation is expected to remain stubbornly elevated which will keep Fed officials firmly focused on the inflation battle,” he added.