Wall Street Rises on Strong Earnings; Tech Stocks Surge on Meta Gains; Dow Jones Extends Winning Streak
The latest U.S. GDP number for the second quarter was scheduled for release this morning at 8:30 a.m. ET. Wall Street edged higher after better-than-expected earnings reports from Meta Alpha and travel stocks. Delivered mixed and disappointing results.
Nasdaq experienced a decline of 0.21% on Wednesday. However, it made a significant recovery today, surging by 1.14%, primarily driven by gains in meta-related stocks. Meta platform stock prices skyrocketed by more than 9.6% this morning, which in turn boosted tech stocks amid increasing hopes of interest rate hikes for the rest of the year. In surprisingly good news, the Wall Street Journal noted that these tech stocks only gained more than 35% this year, a significant rally percentage after last year’s catastrophic decline.
On the other hand, the Dow Jones Industrial Average (DJI) managed to achieve its 13th consecutive advance, marking its most substantial winning streak since the 1980s. If it closes higher today, it will also establish its longest positive run since 1897. The Dow Jones futures increased slightly by 0.13% to 35.565.48 basis points. The S&P 500 benchmark, in turn, has climbed by 0.56% to a high of 4,592.60, and by this, the bull market continues as the market hopes.
In other economic news, the Fed chairman, Jerome Powell, noted that their decisions are mostly driven by the data. Giving it some thought, it’s unlikely to see another interest rate hike for the rest of this year since inflation is cooling and the economy is growing steadily. However, it is still too early to make such assumptions at this point. Federal Reserve Chairman Jerome Powell acknowledges the ongoing efforts to combat inflation and achieve the 2% annual target rate. However, there is growing optimism among market observers that rate hikes have reached their conclusion. Futures traders predict a higher than 50% chance that rates will remain at the current level for the rest of the year, with a 30% likelihood of a single further increase.
In travel market developments, Southwest Airlines Company experienced a 9.5% decline in its stock value after cautioning about elevated labor costs. Conversely, Royal Caribbean Cruises Ltd. saw an 8.7% rise in shares following its upward revision of annual profit forecasts. Additionally, online auction site eBay Inc. projected a disappointing third-quarter profit, resulting in an 8.6% drop in its stock.
In other economic news, oil prices climbed higher this week, with both benchmarks surpassing the $80 per barrel level. Oil prices edged higher this week despite experts’ forecasts of reaching a market level of $76 per barrel at the top.
The West Texas Intermediate climbed by 1.76% to $80.16 per barrel, while Brent oil prices added 1.44% to $83.6 per barrel. Meanwhile, natural gas prices were down by 4.5% to $2.57 per gallon.