Another shaky day of trading on Wall Street concluded with further gains for equities on Wednesday, as the latest round of company earnings reports put investors in a buying mood.
The S&P 500 gained 0.9% after briefly falling into the red in the early going. The Dow Jones Industrial Average increased by 0.6%, while the Nasdaq increased by 0.5%. The most recent gains put the indexes on track for solid gains this week.
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Traders increased their bids for shares in numerous businesses that posted strong quarterly results, helping to raise the overall market. Alphabet, Google’s parent company, gained 7.5%, the most in the S&P 500, after reporting that its digital ad unit drove a 36% increase in earnings last quarter.
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Advanced Micro Devices surged 5.1% after reporting surprisingly excellent fourth-quarter financial results and providing investors with an upbeat sales forecast.
Stocks in communication services and technology A significant portion of the gains were also accounted for by health care companies. Big retailers and other businesses that rely on consumer spending declined. Amazon declined 0.4%, while Gap sank 3.3%.
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Despite higher costs due to rising inflation, the majority of companies that have reported results for the last three months of 2021 have delivered earnings and revenue that exceeded Wall Street’s forecasts.
The S&P 500 climbed 42.84 points to 4,589.38. The Dow increased 224.09 points to 35,629.33, while the Nasdaq gained 71.54 points to 14,417.55. Small-company stocks outperformed the market as a whole. The Russell 2000 index dropped 21.22 points, or 1%, to 2,029.52.
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Bond yields have fallen. The 10-year Treasury yield fell to 1.77% from 1.80% late Tuesday.
Marathon Petroleum increased by 6.1%, while Thermo Fisher Scientific increased by 1.7% on the reporting of good financial results.
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Earnings from certain companies fell short of Wall Street’s forecasts. PayPal fell 24.6%, its worst trading day since splitting from eBay in 2015, after reporting a dismal quarter and lowering its expectations.
Meta Platforms, Facebook’s parent company, plummeted 21.4% in after-hours trading after its latest quarterly profits fell far short of Wall Street’s expectations.