NEW YORK, April 14 — Wall Street rallied to end sharply higher on Wednesday, powered by a recovery in interest-sensitive growth stocks as investors digested hot inflation data and a mixed bag of quarterly results.
“Bond yields may have gotten ahead of themselves and they’re dropping lower today,” said David Carter, managing director at Wealthspire Advisors in New York. “This helps almost all equities, but particularly growthy areas like tech.”set the first-quarter earnings season off to an inauspicious start, reporting a 42 per cent drop in quarterly profit. The downbeat results from the biggest US lender sent its shares down 3.2 per cent.
Minutes from the most recent Fed policy meeting and subsequent remarks from its members have market participants setting easy odds for a series of 50-basis-point interest rate hikes in the coming months, as the central bank treads the delicate tightrope of curbing inflation without provoking a recession.
The Dow Jones Industrial Average .DJIrose 344.23 points, or 1.01 per cent, to 34,564.59, the S&P 500 .SPXgained 49.14 points, or 1.12 per cent, to 4,446.59 and the Nasdaq Composite .IXICadded 272.02 points, or 2.03 per cent, to 13,643.59.enjoyed the largest percentage gains, jumping 2.5 per cent.