U.S. Stocks Remain Firmly Positive After Early Rally

(RTTNews) - Stocks showed a strong move to the upside early in the trading session on Wednesday and have continued to perform well throughout the session. Avoiding the volatility seen in most of the recent sessions, the major averages have remained firmly in positive territory.

Currently, the Dow is off its best levels of the day but still up 263.43 points or 0.7 percent at 35,726.21. The tech-heavy Nasdaq is also up 222.63 points or 1.6 percent at 14,417.08 and the S&P 500 is up 54.97 points or 1.2 percent at 4,576.51.

The extended rally on Wall Street comes as stocks continue to recover from the sharp pullback seen in January, with the Dow reaching its best levels in three weeks.

The major averages remain well off the record highs but have climbed well off the multi-month lows set in late January.

Upbeat earnings news from some well-known companies is also contributing to the continued strength on Wall Street.

Shares of Chipotle Mexican Grill (CMG) have shown a strong upward move after the restaurant chain reported better than expected fourth quarter earnings.

Cannabis producer Canopy Growth (CGC) has also moved sharply higher after reporting a narrow than expected fiscal third quarter loss on revenues that exceeded analyst estimates.

Shares of Enphase Energy (ENPH) have also spiked after the solar energy company reported fourth quarter results that beat expectations and provided upbeat guidance.

On the other hand, shares of CVS Health (CVS) have moved notably lower after the healthcare company reported fourth quarter results that beat expectations but seemed to disappoint investors by reiterating its 2022 guidance.

Sector News

Airline stocks are extending the rally seen over the two previous sessions, with the NYSE Arca Airline Index soaring by 4.5 percent to its best intraday level in well over two months.

Substantial strength has also emerged among biotechnology stocks, as reflected by the 2.7 percent jump by the NYSE Arca Biotechnology Index.

Semiconductor stocks have also shown another strong move to the upside on the day, driving the Philadelphia Semiconductor Index up by 2.5 percent.

Housing, chemical and software stocks are also seeing considerable strength, reflecting broad based buying interest on Wall Street.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index shot up by 1.1 percent, while Hong Kong's Hang Seng Index spiked by 2.1 percent.

The major European markets also showed strong moves to the upside on the day. While the U.K.'s FTSE 100 Index jumped by 1 percent, the French CAC 40 Index and the German DAX Index surged up by 1.5 percent and 1.6 percent, respectively.

In the bond market, treasuries have climbed more firmly into positive territory over the course of the session Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.2 basis points at 1.922 percent.