Dow gains 163 points following Fed meeting, Big Tech testimony
- US stocks rose Wednesday following a key Federal Reserve policy meeting and congressional testimony from big tech companies including Facebook and Amazon.
- The Federal Reserve held interest rates near zero, and again pledged to do whatever it takes to aid the US economy in recovery from the pandemic recession.
- Starbucks and AMD shares climbed after earnings releases. Boeing and General Motors shares also ticked up after earnings reports.
- Later this week, Apple, Amazon, and Alphabet are set to report quarterly earnings.
- Read more on Business Insider.
US stocks rose Wednesday after the Federal Reserve signaled it will provide continued stimulus to the economy amid the pandemic recession.
The Federal Reserve held interest rates near zero on Wednesday, and reiterated that it would do whatever it takes to support the US economic recovery. In a speech, Fed Chair Jerome Powell said the recent uptick in coronavirus cases is beginning to weigh on the recovery.
“If anything, there was more mention of fiscal policy than monetary policy in Powell’s speech,” said Seema Shah, chief strategist at Principal Global Investors. “Certainly, while investors ears were leaning into Powell’s comments, their minds will likely also be trained on discussions currently underway in Congress about the forthcoming fiscal cliff.”
Also on Wednesday, the CEOs of big tech companies including Apple, Amazon, Facebook, and Google parent Alphabet gave testimony before the House Antitrust Subcommittee addressing how they are handling antitrust challenges from regulators. Tech stocks, which have outperformed this year, held onto gains through the start of the hearing.
Here’s where US indexes stood at the 4:00 p.m. ET market close on Wednesday:
- S&P 500: 3,258.60, up 1.25%
- Dow Jones industrial average: 26,541.97, up 0.61% (163 points)
- Nasdaq composite: 10,542.95 up 1.35%
Read more: Jason Tauber is crushing the market this year by finding the tech companies enabling the biggest disruptions. He told us how he’s adjusting his game plan as valuations soar – and 7 of his top picks today.
Earnings season continued. Shares of AMD surged Wednesday following a better-than-expected earnings release Tuesday. Starbucks rose after its CEO Kevin Johnson said that same-store sales for open locations turned positive in July, a sign of recovery from pandemic-related lockdowns.
General Motors and Boeing also ticked up after releasing quarterly results Wednesday before the opening bell. Shares of Tesla gained about 3% after Morgan Stanley boosted its price target for the second time this month.
Eastman Kodak surged more than 500% Wednesday after securing a $765 million government loan to produce drug ingredients in response to the coronavirus pandemic.
Investors will be awaiting further earnings report scheduled this week. Apple, Amazon, and Alphabet are set to report quarterly earnings on Thursday, giving further information about how the companies have fared amid the pandemic, ensuing lockdowns, and a recent uptick in new COVID-19 cases.
Read more: 3 Wall Street pros managing $12 billion in assets share their strategies for profiting from the economy’s recovery – and explain why investors should be aggressively taking risks now
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