U.S. shares rose on Wednesday as a rebound in growth stocks on falling yields and strong results from Delta Air Lines offset declines in JPMorgan after the bank reported a slump in first-quarter profit in a mixed start to the earnings season.
Megacaps Apple Inc and Microsoft Corp rose 1.7pc each, while Nvidia Corp and Advanced Micro Devices Inc gained 2.7pc and 1.9pc, respectively, after chipmakers’ shares got battered this week.
The Philadelphia semiconductor index climbed 2.2pcafter dropping nearly 20.9pc so far this year.
The benchmark U.S. 10-year Treasury yield fell, helping techand tech-adjacent stocks that have been under pressure in the last few weeks, even as data showed producer prices increased more than expected in March amid a surge in demand for services.
“The market is coming to the conclusion that the March datais likely to be the peak,” said Sam Stovall, chief investmentstrategist at CFRA Research.
Eight of the 11 major S&P 500 sectors advanced. Industrialstocks gained 0.8pc helped by a surge in airlineshares.
Delta Air Lines Inc jumped 4.3pc after posting a smaller-than-expected quarterly loss and forecasting a return to profit in the current quarter on the back of booming traveldemand.
“Delta Airlines is in the sweet spot of the reopeningtrade,” said Art Hogan, chief market strategist at NationalSecurities in New York.
Wall St ticks higher as recovery in growth stocks offsets mixed earnings
“Investors have been taking a wait and see attitude, but itlooks like a very positive response to Delta and likely theother travel and leisure names.”
Other airlines such as American Airlines Group Inc,United Airlines Holdings Inc and Southwest Airlines Cogained between 5.2pc and 9.0pc.
Meanwhile, capping market gains, JPMorgan Chase & Cofell 2.9pc as CEO Jamie Dimon warned of economic uncertainties arising from Russia’s invasion of Ukraine and soaring inflation, after first-quarter profits at the largest U.S. bank slumped42pc.
Other big banks Citigroup Inc, Wells Fargo & Co, Goldman Sachs Group Inc, Morgan Stanley and Bank of America Corp, which report later this week and next week, fell between 0.2pc and 1.0pc.
At 12:23 p.m. ET, the Dow Jones Industrial Averagewas up 189.79 points, or 0.55pc, at 34,410.15, the S&P 500was up 34.01 points, or 0.77pc, at 4,431.46, and the NasdaqComposite was up 215.23 points, or 1.61pc, at 13,586.81.
Analysts expect S&P 500 earnings to have increased by about6pc in the first quarter, compared to the 32.1pc jump in thefourth quarter of 2021, according to IBES data from Refinitiv,as an aggressive Fed, soaring inflation and geopoliticaluncertainty due to the Ukraine conflict muddies the outlook for the earnings season.
Advancing issues outnumbered decliners for a 2.84-to-1 ratioon the NYSE and a 2.75-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and 11 new lows, while the Nasdaq recorded 34 new highs and 141 new lows.