NEW YORK :U.S. stocks advanced in opposition to their global counterparts on Wednesday, and crude extended its decline on worries that demand could soften.
Megacap growth stocks faltered, limiting the tech-heavy Nasdaq’s gains.
Economically sensitive sectors helped propel the S&P 500 and the Dow to more substantial gains.
“We’re making up for the losses yesterday, yet investors are still cautious ahead of a slew of earnings, along with retail sales on Thursday morning,” said Ryan Detrick, chief market strategist at Carson Group in Omaha.
Large banking firms have reported a string of upbeat earnings. Most recently, Morgan Stanley reported consensus-beating quarterly profit, sending its shares to a record high.
Upbeat earnings from United Airlines boosted commercial air carrier stocks by 6.7 per cent.
But on Tuesday, chip equipment maker ASML forecast weaker than expected 2025 sales, prompting demand concerns.
“It’s early this earnings season but financials have done extremely well, of course we have many other industries coming up soon, but it is a nice start to this earning season,” Detrick added. “After ASML’s disappointing guidance yesterday, worries are jumping regarding AI (artificial intelligence) and tech in general.
“The bar is set quite high and they have an important job to do, to show that the overall growth they continue to see is justified,” Detrick said.
The Dow Jones Industrial Average rose 330.75 points, or 0.77 per cent, to 43,070.01, the S&P 500 rose 27.49 points, or 0.47 per cent, to 5,842.82 and the Nasdaq Composite rose 54.33 points, or 0.30 per cent, to 18,369.92.
European stocks settled lower in the wake of disappointing results from ASML. Luxury goods maker LVMH weighed on sentiment as investors remained cautious ahead of the European Central Bank’s (ECB) policy decision on Thursday.
MSCI’s gauge of stocks across the globe rose 0.74 points, or 0.09 per cent, to 851.99. The STOXX 600 index
