U.S. Stocks Show Another Significant Move To The Upside

(RTTNews) - Stocks showed a strong move to the upside during trading on Wednesday, extending the rally seen in the previous session. The major averages all moved notably higher, with the tech-heavy Nasdaq helping to lead the advance.

The Nasdaq reached a new high for the session going into the close, spiking 295.92 points or 2.1 percent to 14,490.37. The S&P 500 also surged up 65.64 points or 1.5 percent to 4,587.18, while the Dow jumped 305.28 points or 0.9 percent to 35,768.06.

The extended rally on Wall Street came as stocks continued to recover from the sharp pullback seen in January, with the Dow reaching its best levels in almost a month.

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 also contributed to the continued strength on Wall Street.

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

Cannabis producer Canopy Growth (CGC) 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) 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) 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 extended the rally seen early in the week, with the NYSE Arca Airline Index soaring by 3.7 percent to its best closing level in well over two months.

Significant strength also emerged among semiconductor stocks, as reflected by the 3.4 percent spike by the Philadelphia Semiconductor Index.

Biotechnology stocks also turned in a strong performance on the day, resulting in a 3.3 percent jump by the NYSE Arca Biotechnology Index.

Software, commercial real estate and chemical stocks also saw notable strength on the day, 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.

Looking Ahead

Trading on Thursday is likely to be driven by reaction to a highly anticipated report on consumer price inflation, which could impact expectations for how aggressive the Federal Reserve will be regarding raising interest rates.

On the earnings front, Disney (DIS) and Uber (UBER) are among the companies releasing their quarterly results after the close of today's trading, while Coca-Cola (KO) and Twitter (TWTR) are among the companies due to report their results before the start of trading on Thursday.