US: Stocks rise ahead of tech earnings deluge
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WALL Street stocks powered higher for a second straight session on Monday, cheered by signs of greater political normalcy in Britain and optimism about corporate earnings.
Analysts pointed to the election of British politician Rishi Sunak as Conservative party leader and Britain’s next prime minister, turning the page on the rocky tenure of outgoing leader Liz Truss, whose tax cut proposal had plunged markets into turmoil.
Investors are also hopeful about the upcoming deluge of earnings reports, particularly from large tech companies that have often outperformed earnings expectations.
“Earnings season is coming in much less badly than I think the market was anticipating,” said Andy Kapyrin, co-chief investment officer at RegentAtlantic.
“That’s giving people some encouragement to anticipate some better things ahead.”
The Dow Jones Industrial Average finished up 1.3 per cent, or more than 415 points, at 31,499.62. The broad-based S&P 500 gained 1.2 per cent to 3,797.34, while the tech-rich Nasdaq Composite Index advanced 0.9 per cent to 10,952.61. Stocks also rallied on Friday, with investors embracing a Wall Street Journal report that suggested the Federal Reserve could soon moderate its aggressive efforts to counter inflation.
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US-listed Chinese stocks were in retreat on worries that Xi Jinping, having secured a third term as president, will extend a crackdown on technology companies.
Investors also fear an extension of China’s zero-tolerance policy on Covid-19. Shares of Alibaba, JD.com and Baidu all lost at least 12 per cent. AFP
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