Following an initial dip, stocks have seen a surge in Wednesday's afternoon trading, offsetting the severe losses suffered in the previous session. Our major averages indicate an upward trend; Nasdaq has risen by 80.67 points or 0.5 percent to 16,321.12, the S&P 500 has advanced by 18.28 points or 0.4 percent to 5,224.09, and the Dow gained 52.06 points or 0.1 percent to 39,222.30.
This uptick in Wall Street resulted from a report by the Institute for Supply Management (ISM) that unexpectedly indicated a slowdown in U.S. service sector growth in March. The services PMI fell from 52.6 in February to 51.4 in March. While a figure above 50 still signifies industry growth, economic experts predicted it to rise slightly to 52.7. A significant reduction in the rate of price growth in the sector added to the positivity.
While the Federal Reserve's reluctance to reduce interest rates initially sparked apprehension, a report from ADP, a payroll processor, indicated a stronger-than-forecasted private sector job growth. This information, coupled with Jerome Powell's, Federal Reserve Chair, statement indicating the central bank's cautious approach to rate lowering, allayed fears.
Despite the market’s overall turn around, Intel shares continue to underperform, following their report of a $7 billion operating loss for 2023 by their semiconductor manufacturing business.
The NYSE Arca Computer Hardware Index saw a 2.3 percent increase, driven by the rise of computer hardware stocks. Gold stocks also experienced a significant surge, as the precious metal's price jumped $30.60 to $2,312.30 an ounce, pushing the NYSE Arca Gold Bugs Index up by 1.9 percent.
The major European markets have shown a positive move, while Asian markets experienced a slump. In the bond market, treasuries have seen minor changes after initial weaknesses, leading to a minimal rise in the yield on the ten-year note.
