Stock market today: Wall Street rises to recover much of this week’s losses as big events loom

NEW YORK (AP) — U.S. stocks are rising Wednesday, recouping much of their steep losses from the previous day, which was Wall Street's worst in three weeks. But several events later in the day could still shake things up.

The S&P 500 rose 0.6% in early trading, a day after sharp declines in Big Tech stocks dragged it down 1%. The Dow Jones Industrial Average was up 198 points, or 0.5%, as of 9:35 a.m. ET, and the Nasdaq composite was up 0.9%.

CrowdStrike rose 20.1% after the cybersecurity company reported higher-than-expected fourth-quarter profits than analysts expected. He also gave an upcoming earnings forecast that beat Wall Street estimates.

Campbell Soup rose 4.1% after it also reported stronger-than-expected profits.

Amazon, Meta Platforms and several other Big Tech stocks also stabilized a day after sending the market tumbling. These stocks have been disproportionately responsible for the S&P 500 hitting record highs due to expectations of continued growth. This has raised the bar for them to justify their high share prices, and their enormous sizes mean their share moves carry far more weight in the market than anything else.

Amazon rose 0.8% a day after falling 1.9%, and Meta gained 1.8% after losing 1.6%.

In the bond market, Treasury yields were falling slightly ahead of potentially influential market events scheduled for 10 a.m. ET.

That's when the latest monthly update will arrive on how many job openings American employers were advertising. Economists expect it to show a slowdown in January from December, which would fit with traders' hopes for continued but more modest growth.

Such a slowdown could help the economy thread the needle and stay out of recession, while also removing upward pressure on inflation. That, in turn, could lead the Federal Reserve to cut its main interest rate, which is at its highest level since 2001, in hopes of reducing inflation by slowing the economy. Such a measure would relieve pressure on the financial system.

Federal Reserve Chairman Jerome Powell He will also begin speaking about interest rates before a House committee in what could be the day's main event.

What he says could further influence expectations about when the Federal Reserve might start cutting interest rates. Traders have already shelved earlier expectations of a March cut and are now looking ahead to June.

In comments prepared for his testimony, Powell said little new. He reiterated his belief that the Federal Reserve will cut its main interest rate this year, but that it needs more evidence that inflation is falling toward its 2% target before acting.

Later that same day, the Federal Reserve will release its “Beige Book,” which outlines how the economy is doing across the country.

On Wall Street, Foot Locker fell 18.1% even though it reported stronger earnings for the latest quarter than analysts expected. The sneaker retailer said it will not resume its dividend yet as it rebuilds its cash. He also gave an upcoming earnings forecast that fell short of analysts' expectations.

Nordstrom also fell despite its fourth-quarter report beating estimates. It sank 13.8% after giving a forecast range of profits for next year whose midpoint was below analysts' estimates.

In the bond market, the 10-year Treasury yield fell to 4.11% from 4.14% late Tuesday.

In foreign stock markets, indices were mixed with mostly modest moves in Europe and Asia.

Hong Kong's Hang Seng rose 1.7% to trim its losses for the week. In China, top officials said they have plenty of room to hit their economic growth target this year, although they acknowledged it is a challenge.

AP journalist Zimo Zhong contributed.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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