The S&P 500, Nasdaq 100 and Dow Jones Industrial Average indices all shattered fresh all-time highs Wednesday, driven by a benign inflation report that boosted risk sentiment among bullish investors.
With the earnings season now halfway through, the percentage of S&P 500 companies reporting positive earnings surprises and the magnitude of earnings surprises were above their 10-year averages.
Stocks surged as weak economic data raised hopes for Fed rate cut. S&P 500 up 1.2%, Nasdaq 100 up 1.5%, Dow Jones up 0.6%. Spotify shares jump 17% on earnings.
The mood on Wall Street turned tentative on Tuesday as investors awaited earnings reports from the “Magnificent 7,” companies that fueled much of the market’s upside since 2023. Index futures rose slightly in early trading. Asian markets closed mostly higher, while European markets started on a firmer footing. Commodities pulled back, and bond yields held steady.