Trader on the floor of the NYSE, Oct. 28, 2022.
Source: NYSE
Stocks rose broadly Wednesday, as strong gains in tech helped the Nasdaq rebound after a losing session. Sentiment was also lifted by easing concerns around the state of the banking sector.
The Dow Jones Industrial Average traded 203 points higher, or 0.6%. The S&P 500 gained 0.9%, and the Nasdaq Composite popped 1.3%.
Big Tech shares also rose, with Meta, Amazon, Netflix and Apple all gaining more than 1%.
Micron shares climbed more than 5% after the chipmaker posted its fiscal second-quarter figures, despite the company posting a $1.4 billion inventory write-down. Shares climbed on comments from executives that the inventory issues are improving. Other semiconductor names followed Micron higher. Nvidia and AMD both popped more than 1%
Regional banks rose broadly, with the SPDR S&P Regional Banking ETF (KRE) advancing more than 1%. Big banks such as Citigroup and Goldman Sachs also advanced.
The benchmark 10-yearTreasury yield fell to 3.5%, and the short-term 2-year rate pulled back to 4.05%. Those declines come a day after both yields advanced, putting pressure on the broader stock market.
The major averages fell Tuesday, as some investors worried that higher interest rates could tip the economy into a recession — even as Wall Street tried to move past this month’s regional banking crisis.
“Every day that something doesn’t break is a good day,” said Ed Yardeni, president of Yardeni Research. He added that the collapse of Silicon Valley Bank may have been the biggest and final break in the sector, which is helping give investors confidence that the Fed has control of limiting further contagion.
“The market keeps waiting for something [else to break] but Silicon Valley Bank was that something,” he said.
