US Stocks Rebound to Close Higher; Tech Earnings Eyed
|Date | 06-02-2018 - 05:01 PM||Article Type | Stock Markets||Region | United States|
Investing.com - Wall Street closed higher shrugging off the prospect of higher interest rates as investors piled into equities ahead of a slew quarterly earnings from large tech firms expected to be a crucial factor in determining direction in equity markets over the coming sessions.
The Dow Jones Industrial Average closed higher at 26,169. The S&P 500 closed 0.08% lower, while the Nasdaq Composite closed at 7411.48, up 0.12%.
US stocks staged a late rally after turning negative intraday following the Federal Reserve's unchanged rate decision and policy statement, in which the Federal Reserve signalled it would push ahead with rate hikes anticipating a “move up” in inflation this year. RBC said that Fed's policy statement signalled a “clear upgrade” on inflation as central bank ditched its usual “remain below 2%" remark concerning inflation.
"Inflation on a 12‑month basis is expected to move up this year and to stabilize around the Committee's 2 percent objective over the medium term," The Federal Reserve said in its monetary policy statement.
Subdued inflation has proved a drag on the Federal Reserve’s ability to raise its benchmark rate, but recent data suggests that sluggish inflation could be nearing an end.
A flurry of tech earnings after the bell, meanwhile, garnered investor focus as they anticipate bullish earnings may quash concerns that mega cap tech stocks may be overvalued.
Facebook (NASDAQ:FB), Qualcomm (NASDAQ:QCOM), Microsoft (NASDAQ:MSFT), and Paypal, are a few of the notable names reporting earnings after the closing bell Wednesday, a day ahead of Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL) earnings. Tech, one the best performing sectors in 2017, is being closely monitored for signs of potential weakness amid concerns about valuations.
On the economic front, meanwhile, investors digested upbeat private sector job creation as private payrolls grew by 234,000 for the month, topping economists’ forecasts for 186,000 increase.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: Boeing Co (NYSE:BA) up 5%, Microsoft Corporation (NASDAQ:MSFT) up 1.4%, Nike Inc (NYSE:NKE) up 1.4%.
Johnson & Johnson (NYSE:JNJ) down 2.9%, Merck & Company Inc (NYSE:MRK) down 3.1%, and Pfizer Inc (NYSE:PFE) down 3%, were among the worst Dow performers of the session.