On Wednesday, the New York Stock Exchange opened higher as solid results and forecasts released by companies such as Salesforce and Capri overrode concerns about inflation and economic conditions.
In opening trade, the Dow Jones Industrial Average gained 235.41 points, or 0.71 percent, to 33,225.53 points, and the larger Standard & Poor’s 500 rose 0.81 percent to 4,165.78 points. Nasdaq Composite is up 1.25%, or 151.21 points, at 12,232.60.
However, the equity market trend remains fragile as investors are concerned that an acceleration of interest rises will push the American economy into recession.
Although it is almost guaranteed that the Federal Reserve will raise rates by half a percentage point this month and in July, there is still uncertainty for the following months. The market had once hoped for a pause in September’s rise in credit costs.
Investors are waiting for clues on the path of rates while U.S. inflation is at a 40-year high.
Two officials from the U.S. central bank, James Bullard and John Williams are expected to speak on Wednesday. Investors are waiting for clues on the path of rates while U.S. inflation is at a 40-year high.
Also on tap for investors is the release of the ISM Manufacturing PMI for May at 14:00 GMT. The Reuters consensus forecast expects the sector’s activity to slow to 54.5 after 55.4 in April.
Salesforce jumped 12% on the back of an upward revision of its adjusted annual profit forecast on the stock side. The group also said that it did not see any significant impact of the worsening economic outlook on its business.
The luxury goods group Capri, whose brands include Michael Kors, Versace and Jimmy Choo, rose 4.3%, helped by an increase in its annual profit forecast.
On the sectoral level, the new technologies compartment (+1.4%) is taking advantage of cheap purchases on stocks such as Apple (+1%), Microsoft (+1.6%), Alphabet (+1.5%) and Meta Platforms (+1.7%).