US: Global stocks extend biggest gains since 2020 as Wall St jumps on earnings

[NEW YORK] Global stocks headed for the biggest 4-day rally since November 2020 as US equities jumped on continued dip-buying in technology shares and better-than-expected earnings. The tech-heavy Nasdaq 100 rose 1per cent and the S&P 500 added 0.6 per cent, with Alphabet and Advanced Micro Devices soaring on strong results. Europe's Stoxx 600 Index traded above its 50-day moving average for the first time since Jan 21. And Brent crude fell from a 7-year high after Opec+ agreed to another output hike.

Investors have been swinging between nervousness over Federal Reserve tightening and confidence in the economic recovery as they navigate a volatile start to the year. A robust earnings outlook is helping to ease the uncertainty, at least for the moment. However, many dangers, including stubborn inflation, geopolitical risks and pandemic flare-ups still lingers in the background.

"We are seeing writ large the market tug-of-war between the reality of a changing monetary backdrop and what that means for multiples - and eventually economic growth - and what's still good earnings growth, even though profit margins are moderating relative to last year," said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

MSCI's gauge of world stocks added 0.8 per cent on Wednesday, taking its 4-day increase to 5 per cent.

Of the 214 S&P 500 companies that have reported results so far, 81 per cent have met or beaten estimates. Profits are coming in 5.4 per cent above levels predicted.

Stocks The S&P 500 rose 0.5 per cent as at 10.12 am New York time. The Nasdaq 100 rose 1 per cent. The Dow Jones Industrial Average was little changed. BLOOMBERG