Wall Street bounced back on Wednesday, recovering some of its losses as a mix of factors played out in the market. A slump in industrial stocks and a surge in Treasury yields were countered by a historic post-earnings gain in Tesla (TSLA), which lifted the tech-heavy Nasdaq Composite nearly 1%.
The first quarter earnings season is in full swing, with all eyes on Meta Platforms’ (META) numbers after the closing bell. Tesla’s impressive quarterly report, which saw CEO Elon Musk touting new mass-market models and positioning the company as an artificial intelligence robotics firm, sparked a surge in its stock price.
Despite briefly slipping into the red, the Nasdaq and other major indices were back in positive territory by the afternoon. Of the 11 S&P sectors, six were in the green, with industrials taking the biggest hit due to disappointing quarterly reports from companies like CSX, J.B. Hunt Transport Services, and General Dynamics.
Other notable earnings-related moves included Hasbro leading as the top gainer on the S&P 500, Boeing erasing gains after news of a stalled acquisition effort, and Biogen climbing on positive news about its Alzheimer’s therapy.
The rebound in Wall Street follows a rough week, with favorable earnings reports from heavyweights on Monday and Tuesday helping to boost investor confidence. However, concerns over rising Treasury yields, driven by a combination of factors including geopolitical tensions in the Middle East, continue to weigh on the market.
Looking ahead, JPMorgan’s Marko Kolanovic warned of further market sell-offs due to concerns about equity valuations, inflation, Fed policy, and profit outlook. The economic calendar for Wednesday was light, with durable goods orders rising more than expected in March, but posing a downside risk for Q1 GDP growth.
Overall, the market remains volatile as investors navigate through earnings season and external factors impacting market sentiment. Stay tuned for more updates as Wall Street continues to react to the latest developments.
