Wall Street indexes rose Wednesday, boosted by megacap stocks and Japan’s dovish policy shift after last week’s surprise rate hike.
Most tech stocks gained over 2%, with Amazon up 2.6%. Conversely, Tesla dipped nearly 1%.
All major S&P sectors rose, with information technology and energy leading the gains.
“Many investors are sitting on big gains in tech stocks … so it’s important for investors to right size their risk,” said Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management.
“We expect this volatility to continue for a bit longer.”
The CBOE Volatility Index, Wall Street’s fear gauge, dropped to 23.09 points from Monday’s high of 65.73.
The BOJ’s surprise rate hike on July 31 caused a global stock rout as investors unwound yen carry trade positions.
On Wednesday, global equity markets rose as BOJ Deputy Governor Uchida assured no rate hikes amid market instability, boosting sentiment.
By 11:22 a.m. ET, the Dow rose 0.90%, the S&P 500 increased 1.36%, and the Nasdaq gained 1.64%.
The S&P 500 and Nasdaq rose over 1% Tuesday as Fed comments eased recession fears, shifting focus to earnings.
Fortinet soared 24.6% as the cybersecurity firm raised its annual revenue forecast.
Conversely, Airbnb dropped 12.7% after forecasting lower Q3 revenue and shorter booking windows due to economic uncertainty.
Walt Disney dropped 1.9% due to anticipated ‘moderation in demand’ at its theme parks in the upcoming quarters.
Super Micro Computer fell 16.3% due to lower margins, while Dell Technologies also dropped 4.9% as a result.
Amgen dropped 4.4% due to a 1% profit decline, as higher expenses offset a 20% revenue increase.
Charles River Laboratories fell 12.4% as it revised its annual forecast downward.
The markets await U.S. central bank comments next week, especially before Fed Chair Jerome Powell speaks at Jackson Hole.
Advancing issues led decliners 3.31-to-1 on the NYSE and 1.83-to-1 on Nasdaq.
The S&P 500 saw 15 new highs and one low, whereas the Nasdaq Composite had 27 highs and 84 lows.
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