S&P 500 Climbs as Investors Turn to Defensive Buys: Markets Wrap

(Bloomberg) — Volatility gripped U.S. stocks on Wednesday as investors braced for losses from major technology companies after a lackluster earnings share highlighted the impact the strengthening of the Federal Reserve in the economy.

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The S&P 500 rose after the volatility, boosted by gains in health stocks. The tech-heavy Nasdaq 100 pared losses that had hit 2% earlier in the session.

Sentiment remains cautious as investors consider earnings. While Microsoft Corp. jumped. after its earnings highlighted the impact of the rising dollar, Google’s parent Alphabet Inc. also fell. after missing estimates. Meta Platforms Inc., Amazon.com Inc. and Apple Inc. are among the major companies still reporting this week.

Stocks have risen in recent days due to strong earnings reports and speculation that the Federal Reserve may hold back on rate hikes. About a quarter of S&P 500 companies reported third-quarter results, and more than two-thirds beat analysts’ forecasts despite a major slowdown in technology. But investors are still worried that the decline in output will reduce profits in the coming months.

“What I think is highlighted in technology right now is in some ways the canary in the coal mine for the broader market,” said Erin Browne, portfolio manager at Pacific Investment Management Co., on Bloomberg Television. “They’re talking about weak ad spending and weaker spending and weaker demand. This goes from the consumer side to the industry side. “

Treasury rates fell after data showed a widening of the US trade deficit. US new home sales fell in September, another sign that the economy is starting to see the effects of the Fed’s rate hike. The dollar weakened for a second day to its lowest level in three weeks.

The story continues

This week’s highlights:

• This week’s earnings include: Apple, Exxon Mobil, Ford Motor, Credit Suisse, Airbus, Amazon, Bank of China, Boeing, Caterpillar, Cnooc, Intel, McDonald’s, Merck, Samsung Electronics, Shell, Vale, Volkswagen

• ECB rate decision, Thursday

• US GDP, durable goods orders, initial jobless claims, Thursday

• Bank of Japan policy decision, Friday

• US Personal Income, Personal Spending, Pending Home Sales, University of Michigan Consumer Sentiment, Friday

Some of the major market events:

tree parrot

• The S&P 500 was up 0.4% at 11:08 a.m. New York time.

• The Nasdaq 100 was down 0.5%

• The Dow Jones Industrial Average rose 0.9%

• The Stoxx Europe 600 rose 0.5%

• MSCI World Index rose 1.6%

money

• The Bloomberg Dollar Spot Index fell 0.8%

• The euro rose 0.8% to $1.0050

• The British pound rose 1.1% to $1.1599

• The Japanese yen rose 0.9% to 146.58 per dollar

Cryptocurrency

• Bitcoin rose 3.5% to $20,902.55

• Ether rose 7% to $1,577.41

bond

• The yield on 10-year Treasuries fell 10 basis points to 4.01%

• Germany’s 10-year yield fell four basis points to 2.13%

• Britain’s 10-year yield fell five basis points to 3.59%

goods

• West Texas Intermediate crude rose 2.8% to $87.67 a barrel

• Gold futures rose 0.8% to $1,671.30 an ounce

–With assistance from Allegra Catelli, Abigail Moses, Robert Brand, Vildana Hajric and Isabelle Lee.

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