The main US stock indices rose yesterday, Wednesday, after a larger-than-expected decline in retail sales in December revived hopes that the Federal Reserve (the US central bank) would reduce the amount of interest rate hikes, while the rise in Tesla and Microsoft shares boosted the Nasdaq index.
The Nasdaq Composite Index rose 75.84 points, or 0.68%, and the Dow Jones Industrial Average increased 37.64 points, or 0.11%, while the Standard & Poor’s 500 rose 11.28 points, or 0.28%.
The moves came after the latest reading of the Producer Price Index, which measures the input costs of businesses and can be a leading indicator of future inflation, showed a decline of 0.5% for the month of December. Economists polled by Dow Jones had expected a decline of 0.1%. This gave relief to investors who had hoped that inflation would subside and that the Federal Reserve would slow or stop raising interest rates.
US Treasury yields fell after the data was released, giving a boost to growth-oriented stocks such as Tesla and Plug Power. Amazon stock rose more than 1% even as a massive round of layoffs began on Wednesday.
Shares of United Airlines rose after the company beat Wall Street estimates in the fourth quarter, driven by strong demand for travel.
Meanwhile, shares of Modern Corp jumped after the drugmaker said its vaccine targeting respiratory syncytial virus could prevent the disease in the elderly.
«European»
European stocks rose yesterday, Wednesday, as risk appetite received support from a set of positive corporate earnings reports, with the index heading towards recording the longest period of continuous gains since November 2021.
During trading, the European Stoxx 600 index rose 0.3%, supported by the rise in interest rate-sensitive technology stocks.
Dutch semiconductor company ASM International jumped 7.7% after posting fourth-quarter profits that exceeded expectations, supported by better-than-expected improvement in supply chain conditions and increased processing of backlogs.
The index rose by nearly 7.5% in a strong start to the year, supported by hopes for the recovery of the Chinese economy and the easing of price pressures, the decline in natural gas futures prices, and the growing expectations of a recession less than expected. Richemont luxury goods rose 2.4% after the company achieved higher quarterly sales, with tourists returning to Europe and Japan.
Shares of Just Eat Takeaway, the largest European food delivery company, rose 14.2% after the company confirmed that its priority would be profitability over growth, despite the decline in orders in the fourth quarter.
Japan
Yesterday, Wednesday, the Japanese Nikkei index jumped to its highest closing level in a month, after the Bank of Japan maintained its ultra-loose monetary policy, and blue-chip technology stocks led the wave of gains. The Bank of Japan kept interest rates ultra-low, defying market expectations that it would ease its massive stimulus program as inflation pressures mount.
The Nikkei rose 2.5 percent to 26,791.12 points, the highest closing level since December 19. The index also recorded the highest daily increase since November 11.
Fast Retailing, owner of the Uniqlo brand, recovered after incurring losses earlier in the session, and closed the transactions up 2.74%. Tokyo Electron shares rose 1.71%.
All sub-indices rose in the Tokyo Stock Exchange, except for the banking sector index, which fell 0.19%.
Dai-ichi Life Holdings Insurance fell 1.67%, and was the worst performer on the Nikkei index. Mitsubishi UFJ Financial fell 0.79%.
(Archyde.com)