Dow leads Wall St revival after inflation data; tech stocks recoup losses
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
PCE inflation rises moderately in June
Russell 2000 hits one-week high
Deckers, Baker Hughes climb after results
Dexcom slips after cutting revenue forecast
Indexes up: Dow 1.63%, S&P 1.06%, Nasdaq 0.92%
Updated at 11:46 a.m. ET/1546 GMT
By Ankika Biswas and Lisa Pauline Mattackal
July 26 (Reuters) - Wall Street bounced back on Friday with the blue-chip Dow leading the charge as some megacap tech and chip stocks recovered from the week's pummeling, while a largely in-line key inflation reading kept bets of an early rate cut alive.
Industrial conglomerate 3M MMM.N jumped19%, boosting the Dow to a one-month high after itraised the lower end of its annual adjusted profit forecast.
The Philadelphia SE Semiconductor index .SOX was on track to snap a three-day losing streak as Nvidia NVDA.O, Marvell Technology MRVL.O, Broadcom AVGO.O, Texas Instruments TXN.O and Qualcomm QCOM.O rose more than 1% each.
The Magnificent Seven stocks were mixed, with Microsoft MSFT.O and Meta Platforms META.O gaining more than 1%, while Tesla TSLA.O and Alphabet GOOGL.O shed 0.7% and 2%, respectively.
The 10-year Treasury yield US10YT=RR turned lower after the inflation data. US/
Economically sensitive small-cap stocks rose, with the Russell 2000 .RUT jumping 1%, set for its third straight weekly gain in two months and its best three-week run since August 2022.
The moderate rise in U.S. prices underlined an improving inflation environment, potentially positioning the Federal Reserve to start easing policy in September. The central bank's July monetary policy decision is due next week.
"A cut next Wednesday is unlikely, but the Fed can at least acknowledge that they're more confident in the disinflationary trends," said Brian Jacobsen, chief economist at Annex Wealth Management. "The markets should warmly greet that."
Bets of a 25-basis-point cut by the Fed's September meeting held steady at about 88% after the PCE reading, according to CME's FedWatch. Traders still largely expect two rate cuts by December, according to LSEG data.
At 11:46 a.m. ET, the Dow Jones Industrial Average .DJI was up 652.82 points, or 1.63%, at 40,587.89, the S&P 500 .SPX was up 57.19 points, or 1.06%, at 5,456.41, and the Nasdaq Composite .IXIC was up 158.56 points, or 0.92%, at 17,340.28.
However, the S&P 500 and the Nasdaq remained on track for a second straight week of losses after investors dumpedtech stocks over thepast few weeks. Disappointing earnings from Alphabet and Tesla sparked a steep sell-offin megacap and artificial-intelligence-linked shareson Wednesday.
Worries about WallStreet's growing dependence on a set of high-momentum stocks, whose valuations now appear inflated, have made underperformingsectors like mid- and small-cap stocks seem more attractive, now thatearly rate cuts seem likely.
Industrials .SPLRCI and Materials .SPLRCM led gains across the S&P 500 sector indexes. Energy .SPNY bucked the trend and fell tracking lower oil prices.
In earnings, DeckersOutdoor DECK.N jumped 8.0% after it raisedits annual profit forecast, while oilfield services firm Baker Hughes BKR.O climbed 3.3% after beating estimates for second-quarter profit.
Medical device maker Dexcom DXCM.O slumped 42.0% after cutting its annual revenue forecast.
Of the 206 companies in the S&P 500 that have reported second-quarter earnings till date, 78.6% beat analysts' expectations, according to LSEG data.
Advancing issues outnumbered decliners by a 3.46-to-1 ratio on the NYSE, andby a 2.05-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs, while theNasdaq recorded 161 new highs and 39 new lows.
U.S. stocks weekly performance https://tmsnrt.rs/3yauR7f
Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru; Editing by Saumyadeb Chakrabarty and Pooja Desai
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
