US stocks rebound from midday swoon as S&P 500 snaps losing streak / Photo: © AFP
US stocks rebound from midday swoon as S&P 500 snaps losing streak
Wall Street stocks survived a midday swoon and finished higher Thursday following solid results from chip company Nvidia that boosted tech shares.
The advance snapped a four-day losing streak for the S&P 500 following a mixed day on global equity bourses and a rally in oil prices.
Equities have been under pressure due to anxiety that the Federal Reserve will prolong a period of aggressive interest rate hikes.
Thursday's pullback in New York came amid worries that "less discretionary spending is apt to translate to slower growth and further cuts to earnings estimates while the Fed looks intent on raising rates higher than expected for longer than expected," said Briefing.com.
"Buyers stepped in to buy the dip, though, and the main indices all finished the session with decent gains."
All three major US indices advanced, led by the Nasdaq, which won 0.7 percent behind a 14 percent surge in Nvidia shares.
Traders are now fixating on a scenario in which the Fed undertakes quarter-point interest rate increases in March, May and possibly June, Oanda's Edward Moya said in a note.
But the yield on the 10-year US Treasury note edged lower after flirting with four percent.
Commerce Department data Thursday showed the US economy grew in the last quarter of 2022 at a rate of 2.7 percent, annualized, lower than the 2.9 percent increase originally reported.
The report comes ahead of Friday's reading on the personal consumption expenditures (PCE) price index, which is a key data point for the Fed.
In Europe, both Frankfurt and Paris stocks closed higher, but London's benchmark FTSE 100 index dipped.
London's loss came despite shares in Rolls-Royce soaring 23 percent after the maker of aircraft engines promised greater efficiency under its new chief executive Tufan Erginbilgic.
Oil prices bounced higher after several days of sliding.
"Crude oil prices have rebounded... as China demand expectations contrive to help keep a floor under prices," said CMC Markets analyst Michael Hewson.
- Key figures around 2150 GMT -
New York - Dow: UP 0.3 percent at 33,153.91 (close)
New York - S&P 500: UP 0.5 percent at 4,012.32 (close)
New York - Nasdaq: UP 0.7 percent at 11,590.40 (close)
London - FTSE 100: DOWN 0.3 percent at 7,907.72 (close)
Frankfurt - DAX: UP 0.5 percent at 15,475.69 (close)
Paris - CAC 40: UP 0.3 percent at 7,317.43 (close)
EURO STOXX 50: UP 0.4 percent at 4,258.16 (close)
Hong Kong - Hang Seng Index: DOWN 0.4 percent at 20,351.35 (close)
Shanghai - Composite: DOWN 0.1 percent at 3,287.48 (close)
Tokyo - Nikkei 225: Closed for a holiday
Euro/dollar: DOWN at $1.0600 from $1.0605 on Wednesday
Pound/dollar: DOWN at $1.2017 from $1.2046
Euro/pound: UP at 88.17 pence from 88.03 pence
Dollar/yen: UP at 134.70 yen from 134.84 yen
Brent North Sea crude: UP 2.0 percent at $82.21 per barrel
West Texas Intermediate: UP 1.9 percent at $75.39 per barrel
burs-jmb/sst
F.Hammond--TNT
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