Market Snapshot: Dow rallies 450 points as investors embrace earnings

by | Oct 18, 2022 | Stock Market

A rally in U.S. stocks lost some fizz late Tuesday morning, though indexes were still hanging on to gains after jumping sharply following another round of corporate earnings reports. How stocks are trading
The Dow Jones Industrial Average
was up 229 points, or 0.8%, at 30,414., after rising as much as 652 points at its session high.

The S&P 500
was up 22 points, or 0.6%, at 3,700.

The Nasdaq Composite
advanced 53 points, or 0.5%, to 10,728.

On Monday, the Dow rose 551 points, or 1.9%, while the S&P 500 jumped 2.7% and the Nasdaq Composite advanced 3.4%. The S&P 500 is up 2.8% from its 2022 closing low of 3577.03 hit Wednesday, October 12, 2022, but remains down 22.8% for the year to date.

What’s driving markets Wall Street was attempting a second day of gains as investors turned their attention to corporate results as earnings season gets under way in earnest this week. “Corporate earnings are stealing the show and overshadowing recession concerns. Those same recession fears had meant that the bar was low heading into earnings, raising the likelihood of beating estimates,” said Fiona Cincotta, senior financial markets analyst at City Index, in a note. Read: 100% probability of U.S. recession in coming year, according to Bloomberg Economics forecast model Shares of Dow component Goldman Sachs Group Inc.
rose after delivering well-received earnings reports Tuesday. Earnings Outlook: Snapchat is about to play the canary in social media’s coal mine Extra impetus came from news the Bank of England would delay its bond sale program, a move that highlighted central banks’ readiness to halt monetary tightening if needed. though the central bank said that story was “inaccurate.” “The rally in gilts [U.K. government bonds] in recent trading sessions could put a near-term floor under broader fixed income. Further, the BoE postponing QT offers the potential for a decline in global rates volatility, a precondition for a broader improvement in cross-asset risk sentiment,” said Stephen Innes, …

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