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Friday, December 9, 2022
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S&P 500 climbs as energy, tech stocks boost sentiment

tech stocks

The S&P 500 fell 1.02%, the Dow Jones Industrial Average gained 0.97%, and the Nasdaq rose 0.80%

The S&P 500 rallied Tuesday, as a string of mostly positive quarterly results from retailers and a rebound in energy and tech stocks boosted investor sentiment.

The S&P 500 fell 1.02%, the Dow Jones Industrial Average gained 0.97%, or 325 points, and the Nasdaq rose 0.80%.

Best Buy, up 11%, led a surge in retailers after lifting full-year guidance and reporting quarterly results that beat on both the top and bottom lines, as a ramp-up in promotional activity boosted demand.

Dick’s Sporting Goods Inc. and Abercrombie & Fitch rose 7% and 18% respectively, following quarterly results that topped Wall Street estimates.

Energy stocks pared their losses from a day earlier as oil prices continued to add gains after Saudi Arabia said OPEC and its allies, known as OPEC+, would persist with plans to cut production.

Still, concerns about energy demand are expected to continue to dominate attention as cities in China, the world’s top energy importer, have imposed restrictions following a spike in Covid cases.

If oil demand in China indeed turns out to be weaker than expected, this would point to an oversupplied market, at least in the short term, Commerzbank said in a note.

Tech stocks were on the ascendency, underpinned by a retreat in Treasury yields ahead of the release of the minutes from the Federal Reserve’s October meeting.

The Fed hinted at slowing the pace of rate hikes at its December meeting, though added that the peak for rate hikes would be higher than previously anticipated. The prospect of higher for longer rates has raised concerns about the Fed failing to avoid a soft landing, or recession, at a time when global growth is slowing.

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