U.S. stocks rose Wednesday as traders looked to recover from a down session, with traders betting the worst is of the banking crisis is over.
The Dow Jones Industrial Average traded 250 points higher, or 0.8%. The S&P 500 gained 1%, and the Nasdaq Composite popped 1.2%.
Lululemon shares popped 14% after the athletic apparel retailer beat Wall Street’s estimates for adjusted earnings and revenue. Meanwhile, Micron shares climbed more than 2% after the chipmaker posted its fiscal second-quarter figures.
The benchmark 10-year note yield advanced to 3.60%, and the short-term 2-year rate climbed to 4.12%. Those declines come a day after both yields advanced, putting pressure on the broader stock market.
The major averages fell Tuesday, as some investors worried that higher interest rates could tip the economy into a recession — even as Wall Street tried to move past this month’s regional banking crisis.
“When you dig beneath the headline, it’s a little weaker than the headline suggests. So, for instance, if you break up the Nasdaq into quintiles, only the top quintile is up; all four of the other quintiles are down,” Solus Alternative Asset Management’s Dan Greenhaus said Tuesday on CNBC’s “Closing Bell.”
“They have the largest weighting in a number of indices. But at the same time, we shouldn’t be lured to sleep, so to speak, in saying that everything’s all well in the Nasdaq or the S&P or wherever, if most of the carrying is being done by the top portion,” he added.
The Federal Reserve’s Vice Chair of Supervision Michael Barr will make another appearance in Washington on Wednesday, this time before the House Financial Services Committee. This hearing will address federal regulators’ response to recent bank failures.
On the economic front, traders are awaiting the latest pending home sales data that’s set to release Wednesday after the open. Economists polled by Dow Jones forecast a decline of 3% in February, down from a rise of 8.1% the previous month.
Comments