US Market, trading on the U.S bourse is choppy as investors continue to react to varying earning reports that come to the market.
On Monday, the S&P 500 climbed 0.6% to 4,296.12 after erasing an early 1.7% loss. The rally was led by stocks of internet-related companies, including Twitter, which jumped 5.7% after agreeing to let Tesla CEO and tweeter extraordinaire Elon Musk buy it.
The Dow Jones industrial average rose 0.7% to 34,049.46, while the Nasdaq composite rallied 1.3% to 13,004.85.
The S&P 500 is coming off a three-week losing streak, dogged by worries about the Federal Reserve's plans to move faster in raising interest rates to curb high inflation.Gains for several big tech-related stocks were the strongest forces lifting the S&P 500 Monday, including a 2.4% gain for Microsoft and a 2.9% rise for the Class A shares of Google’s parent, Alphabet.
|I:DJI||DOW JONES AVERAGES||34049.46||+238.06||+0.70%|
|I:COMP||NASDAQ COMPOSITE INDEX||13004.85||+165.56||+1.29%|
Earning Reports, the likes of; General Electric, UPS, Valero Energy, Raytheon Technologies, PepsiCo, and DR Horton among others. Also, in the afternoon the focus will turn to tech titans Microsoft and Alphabet.
Microsoft, the Dow member is expected to say earnings-per-share rose 12% from a year ago to $2.19, on a 17.6% spike in revenue to $49.05 billion.
Inflation remains a key concern for investors. Investors are worried about whether the Fed will be able to hike rates enough to quell inflation but not so much as to cause a recession.
Covid restrictions, The government has recently lifted most COVID restrictions as case numbers have abated after a wave of the omicron variant.
"This should drive a bounce back in downtrodden parts of the service sector. And a further drop in precautionary savings should provide an extra boost to consumption," Alex Holmes of Capital Economics said in a commentary. "With private consumption still well below pre-pandemic levels, there is plenty of scope for a rebound," he said.
China lockdowns, there is growing fear in China that strict lockdown might extend from Shanghai to Beijin. China’s capital, Beijing, has begun mass testing of more than 3 million people and restricted residents in one part of the city to their compounds, sparking worries of a wider lockdown similar to Shanghai.
Commodities, US. benchmark oil gained 60 cents to $99.14 per barrel in electronic trading on the New York Mercantile Exchange. It lost $3.53 to $98.54 on Monday. Brent crude, the standard for pricing international oil, gained 77 cents to $102.93 per barrel.