LAST UPDATE: 20:41
The upward reaction on Wall Street is being strengthened, with the support of the technology industry, as investors try to assimilate the latest data on the new increase in producer prices, while at the same time focusing on the announcements of the first quarter corporate results.
On the board, the Dow Jones industrial average adds 214.92 points or 0.63% and moves to 34,435.28 points, the broader S&P 500 is up 0.77% to 4,431.40 points, while the technological Nasdaq is 1.61 % higher at 13,586.75 points.
Investors have turned their attention to the companies’ financial performance as the quarterly results announcement period begins, looking for news that could boost investment sentiment and divert attention from the continuing spike in inflation.
Given the myriad winds that companies faced in the first quarter and the period that followed, investors are skeptical about the performance of companies, a negative image of which could affect the stock market, with some, however, appearing more optimistic.
Additional support for the market is provided on Wednesday by the decline in US bond yields, amid hopes that inflation has reached its peak and a decline is imminent.
It is noted that the yield of the US 10-year is falling by 6 basis points and stands at 2.67%.
This despite the latest economic data and developments from abroad support fears that the “shadow” of inflation continues to spread more and more over economies.
Earlier, it was reported that the US producer price index in March in the US 1.4% jumped 1.4% from the previous month, as the rally in energy continues to push prices, in an additional indication that inflation is not expected to escalate. soon from the high 40s he has climbed in recent months.
Since March last year, the index has jumped 11.2%, from 10% last month, climbing to its highest level since the early 1980s.
The official measurements exceeded the estimates of analysts who spoke of an annual increase of the index by 10.6% and a monthly by 1.1% in a Bloomberg poll.
The structural index excluding energy and food increased by 1% from the previous month and by 9.2% from the corresponding period last year, as shown by government data,
Meanwhile, developments abroad are intensifying the overall debate on inflation and rising interest rates. The United Kingdom reported the fastest rate of inflation in 30 years and the Reserve Bank of New Zealand raised interest rates by half a percentage point higher than expected. The Bank of Canada is also expected to raise interest rates by half a point later Wednesday.
On the business front, the share of JPMorgan Chase fell 2.8% after the announcement of profitability below analysts’ expectations for the first quarter of the year.
The BlackRock title, which announced gains that exceeded market estimates, recorded marginal losses.
On the other hand, the share of Delta Air Lines jumped more than 4%, which presented better-than-expected figures for the first quarter, dragging up the titles of other airlines.
Source: Capital
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