December 9, 2022

Raven Tribune

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Dow jumps 600 points, Nasdaq rises 2% as strong earnings boost Wall Street for a second day

Dow jumps 600 points, Nasdaq rises 2% as strong earnings boost Wall Street for a second day

Shares rose sharply on Tuesday morning as investors looked to extend Monday’s rally amid a busy week of corporate earnings.

The Nasdaq Composite Index led the way with a gain of 2.6%. The Dow Jones Industrial Average rose 600 points, or about 2%. The S&P 500 added 2.2%.

Tuesday morning’s strong earnings results added fuel to the rally that started on Monday. Goldman Sachs rose more than 4% after strong trading results helped the investment bank beat earnings and revenue expectations.

This report continued to impose a strong earnings ban, including tunes from Bank of America and Bank of New York Mellon on Monday.

Salesforce stock rose 6% after activist Starboard Value LP disclosed a stake in the software giant, boosting the Dow Jones Index.

The Dow is off to a strong start to the week, adding nearly 551 points on Monday. The S&P 500 is also up 2.65% on the day. The Nasdaq rose 3.43% as technology shares rebounded, led by names such as Amazon, Meta Platforms and Microsoft. It was the best day for the tech heavyweight since July 27.

Recession fears and hyper-aggressive central banks have helped push US markets to their lowest levels this year in recent weeks, but a strong start to earnings season may indicate that the economy is currently in better shape than expected.

‚ÄúThird and fourth quarter earnings should confirm that fundamentals remain firm in a flexible labor market and Covid reopening. Stock valuation likely remains tied to global central bank rhetoric and rates, which are gradually turning less negative. As such, we see stocks primed for direction Bullish during the year Dobravko Lakos-Bojas, head of global macro research at JPMorgan, said in a note to clients: – Stop on resilient earnings in the second half of ’22, lower stock position, very negative sentiment, and give a more reasonable valuation.

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“Next year, however, we expect a tougher earnings background compared to current expectations,” he added.