U.S. stocks led by Nasdaq soared as debt securities slipped in hopes of an inflation peak.

US stocks led by Nasdaq were higher on Wednesday afternoon as bond earnings slipped in the hope that inflation could peak, despite disappointing earnings from JPMorgan Chase & Co.

The stock market bulls are looking at corporate earnings reports to focus on the rise in inflation, which has raised expectations of a Federal Reserve interest rate-rise.

whats going on
  • Dow Jones Industrial Average DJIA
    203 points or 0.6% to 34,423.

  • S&P 500 SPX
    It was up 36 points, or 0.8%, at 4,433.

  • Nasdaq Joint COMP
    It was up 225 points, or 1.7%, at 13,596.

On Tuesday, the Dow, S&P 500 and Nasdaq Composite ended lower, destroying strong opening gains.

What drives markets

Treasury yields rebounded on Wednesday, with some support for the tech stocks and the Nasdaq collective index as investors peaked in US inflation despite rising wholesale prices in March.

The U.S. Manufacturer Price Index, which measures the prices of goods and services, rose 1.4% in March as higher gas and food prices indicate that US inflation will be at a 40-year high in the spring. According to a poll by The Wall Street Journal, economists forecast a 1.1% gain. The increase in wholesale prices over the past year has risen from 10% in the previous month to 11.2% – the highest level since the early 1980s.

The PPI reading comes a day after the US Department of Labor announced that US consumer prices have risen 8.5% in 40 years. CPI data showed a 0.9% decline in sustainable goods inflation, while a 0.7% gain in services inflation, evidence of normalization of the economy after epidemic supply disruptions.

“This key inflation dynamic indicates that base price pressures are at an all-time high in the United States,” said researchers from BCA Research.

Step: This stock market indicator suggests that investors do not think inflation has peaked: analyst

U.S. Treasury Secretary Janet Yellen said on Wednesday that she was “deeply concerned” about the prospect of a recession in Europe, given the impact of the war in Ukraine, but that the Federal Reserve also needed luck and skill to maintain a strong labor market when it comes to inflation. Under. “It’s been done in the past. In a speech to the Atlantic Council, it’s not an impossible combination,” Yellen said.

The UK has announced the fastest inflation rate in 30 years, and has raised interest rates by half a percentage point larger than forecast by the Reserve Bank of New Zealand. The Bank of Canada also raised its key interest rates by half a point on Wednesday.

Meanwhile, the first-quarter U.S. earnings report season began as investors digested the results JPMorgan Chase & Co.
JPM,
As well as Delta Air Lines Inc.
From,
BlackRock Inc.
BLK,
And others.

Shares of JPMorgan Chase plunged 4% after the bank announced that its first-quarter profit fell short of a Wall Street rating.

“JPMorgan’s Q1 earnings are the slowest bookings in the banking industry for two years,” said Octavio Marenci, CEO of Obimas LLC, in an email comment from a capital market consulting firm.

“During an epidemic, [return on equity] Went near 20%. Investment banking and trading performed well, while loan losses were minimal. Now, with rising interest rates, JPMorgan’s incomes have plummeted by more than 40%. This will be the new norm in the banking sector in the future, ”he said.

Lori Calvasina, head of US stock strategy at RBC Capital Markets, noted that consensus earnings for the S&P 500 this year actually rose from $ 224 in January to $ 230 in April.

“We think the first quarter reporting season will be a mess due to the numerous dizziness companies face in the first quarter and the year before. As long as there are strong estimates of basic hunger / need, “he said. Said.

Focusing companies
  • Shares of BlackRock, the world’s largest asset manager, were flat after reporting net income above expectations.

  • Delta shares rose 4.3% after reporting stronger-than-expected results, raising other airlines including American Airlines Group Inc.
    AAL,
    This is an increase of 8.9%. Popular US Global Jets EDF
    JETS
    4.4%.

  • Shares Pet Bath & Beyond Inc.
    PPPY
    The retailer recorded a surprising loss in the fourth quarter and advanced 3% after failing to sell.

How other assets are traded
  • Yield of 10 year treasury note BX: TMUBMUSD10Y
    The 6 base points were down 2.67%. Yield and credit prices move in opposite directions.

  • ICE US Dollar Index DXY,
    The currency against the basket of the six main rivals fell 0.4%.

  • Bitcoin BTCUSD
    5% higher to trade above $ 41,000.

  • Oil Futures extends re-emergence to push US benchmark CL
    It traded up 2.4% to close at $ 103 a barrel. Gold Future GC00
    An ounce was up 0.4% at $ 1,983, the fifth straight daily gain.

  • The Stoxx Europe 600 XX: SXXP
    London’s FTSE 100 UK: UKX, partially over
    0.1% higher.

  • Shanghai Joint CN: SHCOMP
    0.8%, while the Hong Cheng Index HK: HSI
    Hong Kong and Japan’s Nikkei 225 JP: up 0.3% on the NIK
    1.9% higher.

-Contributed to Steve Goldstein Reporting

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