Wall Street surged on Wednesday as corporate earnings reports overshadowed concerns about the U.S. economy slowing down. The S&P 500, Dow Jones, and Nasdaq futures all rose significantly. In Japan, the Nikkei 225 index also increased after a Bank of Japan official hinted at not raising interest rates during market instability.
Disney announced a return to profitability in the third quarter, driven by streaming services, while Shopify saw a jump in shares after strong results. CVS Health, however, slashed its 2024 forecast due to struggles in its health insurance business. Airbnb reported a decline in profit and warned of slowing demand in the U.S., causing its shares to tumble over 14%.
On Tuesday, the S&P 500 broke a three-day losing streak and closed 1% higher. The Dow and Nasdaq also saw gains. The European markets saw increases, with Germany’s DAX up 1%, CAC 40 in Paris up 1.4%, and London’s FTSE 100 up 1.1%.
In Japan, the Nikkei index recovered from Monday’s losses and gained over 400 points to close at 35,089.62. The Bank of Japan reassured markets about its monetary policy stance amidst recent market turmoil, calming investors.
The dollar rebounded against the yen, benefiting export manufacturers, and China reported lower-than-expected export growth in July. Markets in Hong Kong, Shanghai, South Korea, Taiwan, and Australia also saw gains. Crude oil prices rose, while the euro fell against the dollar.
Overall, despite concerns of a slowing economy, the U.S. stock market remains positive for the year, and the Federal Reserve has the option to cut interest rates to support economic growth. Investors are cautiously optimistic about the future.
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