US Equity Indexes Rise as Communication Services Tops Sector Charts

MT Newswires Live11-06

US benchmark equity indexes rose in midday trading on Wednesday as gains in communication services helped push the Nasdaq Composite higher, a respite after the sell-off in the previous trading session.

The Nasdaq Composite advanced 1.1% to 23,594.1, with the S&P 500 up 0.8% to 6,827.6 and the Dow Jones Industrial Average climbed 0.7% to 47,426.8.

On Tuesday, all three indexes closed lower after Palantir Technologies' (PLTR) results triggered valuation concerns while Morgan Stanley and Goldman Sachs reminded investors of the possibility of a correction.

Advanced Micro Devices (AMD) reported Q3 results above consensus overnight. Its shares traded higher the following afternoon on Wednesday. The Global X Artificial Intelligence & Technology ETF (AIQ), with net assets of $5.98 billion and investments in AI-related companies, also traded higher by midday, following a 3.3% slump on Tuesday.

Communication services led the gainers after midday Wednesday, with Alphabet (GOOG, GOOGL) and Meta Platforms (META) trading higher.

Alphabet unit Google's planned $32 billion acquisition of cybersecurity firm Wiz has cleared a key US regulatory hurdle, media outlets reported Tuesday, citing comments from Wiz Chief Executive Assaf Rappaport.

Further in company news, Axon Enterprise (AXON) reported non-GAAP earnings below forecast. Its shares slumped past 10%, among the worst performers on the S&P 500 and the Nasdaq.

Amgen's (AMGN) new launches and pipeline progress are now under investor focus after the company topped estimates for Q3, according to a Morgan Stanley research note. Shares of the pharmaceutical giant popped 8.1%, among the top gainers on the Nasdaq and the Dow.

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