Wall Street held firm midweek, with major US indices continuing their upward momentum as investor sentiment remained buoyant after a strong start to the week.
The S&P 500 rose 0.2 percent on Wednesday, staying in positive territory for the year, while the tech-heavy Nasdaq Composite added 0.4 percent. The Dow Jones Industrial Average gained 61 points, also up 0.2 percent.
Technology stocks once again led the charge. Shares of Nvidia climbed more than 2 percent after the chipmaker said it would deliver 18,000 of its high-end AI chips to Saudi Arabia. Peer semiconductor giant AMD soared over 7 percent after announcing a $6 billion share buyback, bolstering confidence in its long-term growth strategy.
Meanwhile, Bank of America downgraded UnitedHealth to ‘neutral’ from ‘buy’ after the insurer withdrew its full-year guidance. The decision reflects lingering concerns around rising utilization trends and a leadership transition, analysts said. Following a massive 16 percent rout in the previous session, shares were 3 percent in morning trade.
Markets have rallied sharply this week, with the S&P 500 and Dow gaining over 4 and 2 percent, respectively. The Nasdaq has jumped more than 6 percent. Since its April 7 low, the S&P 500 has rebounded over 21 percent, reversing steep losses from earlier in the year.
Much of this optimism has been driven by a temporary thaw in U.S.-China trade tensions. Both countries slashed tariffs earlier this week, easing fears of a prolonged standoff. Investors cheered the 90-day suspension of planned hikes, once expected to cross 100 percent on some goods, which has helped cool nerves and revive risk appetite.
Meanwhile, it’s been a mixed morning with the regional Stoxx 600 in Europe mainly trading lower and hovering just below the flatline in the early afternoon on course to snap a four-session run in the green.
Luxury fashion house Burberry surged nearly 15 percent, topping the index after unveiling a bold cost-cutting and turnaround strategy. While the plan lifted investor sentiment, analysts cautioned that the road to recovery may be long. At the other end, French train-maker Alstom plunged 17 percent, despite swinging back to positive free cash flow, highlighting lingering concerns over its financial outlook. Meanwhile, German defence firm Renk drew attention following a spike in orders.
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