S&P 500 Jumps on Tech Rebound After Powell Downplays More Aggressive Hikes
Investing.com
Published May 04, 2022 01:46PM ET
Updated May 04, 2022 03:39PM ET
By Yasin Ebrahim
Investing.com – The S&P 500 rallied Wednesday, as Federal Reserve chairman Jerome Powell cooled fears of a more aggressive rate hike after the U.S. central bank lifted interest rates for the second time this year.
The S&P 500 rose 2.8%, the Dow Jones Industrial Average gained 2.6%, or 843 points, the Nasdaq surged 2.9%.
Tech rallied, led by Apple (NASDAQ:AAPL), was given a boost as Treasury yields dropped after Powell said the Fed was "not actively considering" a 75 basis point rate hike in the coming months. The sector had struggled for direction earlier in the session after the Fed delivered a widely expected 50 basis points rate hike and said it would get its balance sheet reduction program underway in June.
"In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent and anticipates that ongoing increases in the target range will be appropriate," the Fed said in a statement.
Advanced Micro Devices (NASDAQ:AMD) was a notable outperformer, rising more 8% after the chipmaker upgraded its full-year guidance after delivering a first-quarter beat on both the top and bottom lines.
“We'd note that this positive view comes despite AMD explicitly assuming a more pessimistic backdrop for PCs with overall market shipments now expected to dip 9%,” Wedbush said in a note.
On the earnings front, Lyft , Uber and Starbucks were among the names making headlines.
LYFT (NASDAQ:LYFT) fell about 29% after the ride hailing company delivered softer guidance for the second quarter after reporting mixed first quarter results. The softer guidance was attributed to higher costs as Lyft said it would have to ramp-up spending to attract new drivers.
Uber Technologies (NYSE:UBER) delivered better-than-expected results, but fell more than 4% after flagging a $5.9 billion hit from losses on investments in Grab, Aurora, and Didi.
Starbucks (NASDAQ:SBUX), however, climbed more than 10% after the coffee chain reported a first-quarter results that topped analysts’ estimates, supported by strength in domestic same store sales.
Energy underpinned the intraday rebound as oil prices on fresh fears of supply disruptions after the European Union laid out plans to phase out imports of Russian oil.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.