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U.S. stocks ended sharply higher on Wednesday as tech stocks led a broad rally following a pause in rising interest rates and a batch of upbeat earnings reports that lifted investors’ sentiment. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.9% or 305.28 points to close at 35,768.06 points.
The S&P 500 rose 1.5% or 65.64 points to end at 4,587.18 points. Communication services, real estate and tech stocks led the rally.
The Communication Services Select Sector SPDR (XLC) gained 2.8%, while the Real Estate Select Sector SPDR (XLRE) rose 2.4%. The Technology Select Sector SPDR (XLK) added 2.2%. All the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 2.1% or 295.92 points, to finish at 14,490.37 points, recording its best daily percentage gain since Jan 31.
The fear-gauge CBOE Volatility Index (VIX) was down 6.90% to 19.96. A total of 10.9 billion shares were traded on Wednesday, lower than the last 20-session average of 12.3 billion. Advancers outnumbered decliners on the NYSE by a 2.99-to-1 ratio. On Nasdaq, a 2.40-to-1 ratio favored advancing issues.
Tech Stocks Lead Market Rally
Tech stocks, which drove the markets during the peak of the pandemic, were once again in focus on Wednesday as bond selloffs somewhat slowed down. The 10-year Treasury yield for a change fell 2.6 basis points 1.928%, which was a huge breather for investors.
As rising interest rates took a pause before the release of much-awaited inflation data, growth stocks rallied helping the broader market. The 10-year Treasury yield had jumped 1.954% on Tuesday to hit its highest level since 2019. However, it took a U-turn on Wednesday helping tech stocks soar once again.
The S&P 500’s technology and communications sectors witnessed the sharpest gains. Shares of Meta Platforms, Inc. gained 5.4%, ending its four-day losing streak. E-commerce stocks like Shopify Inc. (SHOP - Free Report) and Etsy, Inc. (ETSY - Free Report) jumped 5.4% and 3.8% respectively. Etsy has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
That said, investors are still keeping a close watch on the all-important 2% level on the 10-year Treasury note ahead of the release of key inflation data on Thursday.
Also, solid earnings reports from a slew of companies gave the much-required boost to investors confidence, which sent stocks on a rally.
No major economic data was released on Wednesday.
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Stock Market News for Feb 10, 2022
U.S. stocks ended sharply higher on Wednesday as tech stocks led a broad rally following a pause in rising interest rates and a batch of upbeat earnings reports that lifted investors’ sentiment. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.9% or 305.28 points to close at 35,768.06 points.
The S&P 500 rose 1.5% or 65.64 points to end at 4,587.18 points. Communication services, real estate and tech stocks led the rally.
The Communication Services Select Sector SPDR (XLC) gained 2.8%, while the Real Estate Select Sector SPDR (XLRE) rose 2.4%. The Technology Select Sector SPDR (XLK) added 2.2%. All the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 2.1% or 295.92 points, to finish at 14,490.37 points, recording its best daily percentage gain since Jan 31.
The fear-gauge CBOE Volatility Index (VIX) was down 6.90% to 19.96. A total of 10.9 billion shares were traded on Wednesday, lower than the last 20-session average of 12.3 billion. Advancers outnumbered decliners on the NYSE by a 2.99-to-1 ratio. On Nasdaq, a 2.40-to-1 ratio favored advancing issues.
Tech Stocks Lead Market Rally
Tech stocks, which drove the markets during the peak of the pandemic, were once again in focus on Wednesday as bond selloffs somewhat slowed down. The 10-year Treasury yield for a change fell 2.6 basis points 1.928%, which was a huge breather for investors.
As rising interest rates took a pause before the release of much-awaited inflation data, growth stocks rallied helping the broader market. The 10-year Treasury yield had jumped 1.954% on Tuesday to hit its highest level since 2019. However, it took a U-turn on Wednesday helping tech stocks soar once again.
The S&P 500’s technology and communications sectors witnessed the sharpest gains. Shares of Meta Platforms, Inc. gained 5.4%, ending its four-day losing streak. E-commerce stocks like Shopify Inc. (SHOP - Free Report) and Etsy, Inc. (ETSY - Free Report) jumped 5.4% and 3.8% respectively. Etsy has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
That said, investors are still keeping a close watch on the all-important 2% level on the 10-year Treasury note ahead of the release of key inflation data on Thursday.
Also, solid earnings reports from a slew of companies gave the much-required boost to investors confidence, which sent stocks on a rally.
No major economic data was released on Wednesday.