Macro
Markets rally on Powell's reassurance, with Nasdaq up 1.2%, as gold and Bitcoin soar amid positive investor sentiment.
By Bill Bullington
ᐧ
The markets rallied on Wednesday, with all major indices on Wall Street posting gains in midday trading. This surge came after Fed Chair Jerome Powell's comments reassuring investors about the Fed's readiness to ease monetary policy in 2024 if inflation trends towards the 2% target. The tech-heavy Nasdaq 100 led the gains, rising by 1.2%, outperforming the S&P 500 and the Dow Jones, which saw increases of 0.8% and 0.6%, respectively. The broad-based rally was evident across all eleven sectors of the S&P 500, indicating a positive sentiment in the stock market.
The positive market sentiment extended beyond equities to other asset classes, including bonds, commodities, and cryptocurrencies. The decline in the greenback and Treasury yields supported gains in these alternative investments. Gold, represented by the SPDR Gold Trust, and Bitcoin both benefited from the overall bullish market environment, reflecting investors' appetite for safe-haven assets and digital currencies.
Several individual stocks experienced significant movements on Wednesday, driven by earnings reports and company-specific news. CrowdStrike Holding Inc. surged over 11% after reporting better-than-expected results, while Palantir Technologies Inc. rallied nearly 12% on securing a lucrative contract with the U.S. Army. On the downside, New York Community Bancorp plummeted by 42% following news of its equity capital raising plans. Nordstrom Inc. and Foot Locker Inc. also faced declines of over 15% and 30%, respectively, due to weaker guidance and earnings results.
Other companies reacting to earnings included Ross Stores, Inc., Campbell Soup Company, United Natural Foods, Inc., Abercrombie & Fitch Co., and DexCom Inc., each experiencing varying degrees of stock price movements based on their quarterly performance. Entravision Communications Corporation tumbled by over 50% after receiving communication from Meta Platforms Inc. regarding the wind-down of its authorized sales partner program.
Finance GPT
beta