Nasdaq Composite Hits 2 Straight Win as Bullish Rally Returns to Stock Market
Coinspeaker
Nasdaq Composite Hits 2 Straight Win as Bullish Rally Returns to Stock Market
The earnings season has truly uplifted the US stock market as the Nasdaq Composite (INDEXNASDAQ: .IXIC) ended Wednesday’s trading session with a second consecutive positive earning.
The Nasdaq Composite shot up by 2.08%, adding 295.92 points to 14,490.37, and the tech-heavy average has added more than 8% since it plunged quite low on January 27. The S&P 500 Index (INDEXSP: .INX) advanced by 65.64 points atop a 1.45% growth to 4,587.18. The 30-stock index, Dow Jones Industrial Average (INDEXDJX: .DJI) was also not left behind as it added 305.28 gains atop a 0.86% growth to 35,768.06.
As reported by CNBC, as many as 60% of all Wall Street companies have reported their earnings, and the market is energized as about 77% have beaten analysts’ estimates thus far. Following its massive plunge earlier this month after it reported an earnings miss and also provided doubtful guidance for the current quarter, Meta Platforms Inc (NASDAQ: FB) is making attempts to regain its balance. The Facebook parent ended the Wednesday session up 5.37% to $232.
“You have a lot of different constituents in the markets these days. You’ll have the guys who are trading short-term, and obviously, for a lot of the stay-at-home stocks we saw get pummeled over the last few months are at much lower multiple levels that make them attractive on a trade basis,” said Wayne Wicker, chief investment officer at MissionSquare Retirement.
Analysts including Wicker believe the ongoing rally is being spearheaded by investors who want stocks that could benefit the economy in the long run.
Tesla Inc (NASDAQ: TSLA) ended the day in green atop a 1.08% growth to $932. Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) surged 4.22% to $23.72 while pharmaceutical giant, Moderna Inc (NASDAQ: MRNA) grew 6.99% to $164.03.
Nasdaq Composite and the Broader Market to Benefit From Current Overselling
The rout in all stocks in January was broad and encompassing, however, analysts believe that with the current overselling, the plausible cause of action for investors is to kickstart an accumulation season.
“If you had asked me last week, I would have said well, a lower number, the market’s going to really rock because the market is pretty oversold. Well now we’ve come back quite a bit, so I think that the risk-reward is even,” said Andrew Slimmon, managing director at Morgan Stanley Investment Management, “What we’re counseling investors is hey, take advantage of the drawdowns. Don’t chase when the market comes roaring back. And I suppose now it has come back quite a bit.”
Unlike the massive uplifting recorded since the start of the year, Bond yields started tapering off with the benchmark 10-year Treasury note traded near 1.945% after touching 1.97% on Tuesday.
The Consumer Price Index (CPI) report, one of the most reliable inflation figures, is due on Thursday, and market stakeholders are gearing up for the potential impact of increasing commodity prices.
Nasdaq Composite Hits 2 Straight Win as Bullish Rally Returns to Stock Market