NEW YORK –
Stocks are opening higher on Wall Street Wednesday, putting the market further into the green for the week after a solid gain a day earlier. The S&P 500 was up 1% in the early going. The gains were broad. Nine of ten stocks in the benchmark index rose, led by big technology companies including Microsoft. The tech-heavy Nasdaq rose 1.4% and the Dow Jones Industrial Average had a more modest gain of 0.7%. The yield on the 10-year Treasury note slipped to 1.94%, but it’s still the highest it’s been since before the pandemic began. Disney reports its latest results after the closing bell.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — Wall Street headed for another strong open Wednesday with inflation and the speed at which the Federal Reserve might pull back stimulus on the minds of investors.
In New York, futures for the benchmark S&P 500 index rose 0.8%, while futures for the Dow Jones Industrial Average were 0.6% higher. Markets are carrying some momentum from Tuesday, when the S&P 500 rose 0.8% and the Dow 1.1%.
Economists believe that when the U.S. posts new data Thursday, it will show inflation rose to a four-decade high 7.3% in January, adding to pressure to control prices. Wall Street expects the Fed to hike rates at least four times this year, starting next month.
Wall Street’s rebound “suggests an attempt by the equity bulls to regain some control,” Yeap Jun Rong of IG said in a report. “Much will depend on the upcoming U.S. inflation data to ease some concerns about tightening ahead.”
Global markets advanced as well. In early trading, the FTSE 100 in London rose 0.7%, while the DAX in Frankfurt and CAC 40 in Paris both climbed 1.5%.
In Asia, the Shanghai Composite Index advanced 0.8% to 3,479.95 and the Nikkei 225 in Tokyo gained 1.1% to 27,579.87. The Hang Seng in Hong Kong was up 2.1% to 24,829.99.
The Kospi in Seoul rose 0.8% to 2,768.85 and Sydney’s S&P-ASX 200 added 1.1% to 7,268.30.
India’s Sensex gained 0.8% to 58,316.17. New Zealand and Southeast Asia markets rose.
Home energy technology company Enphase Energy climbed more than 20% in premarket trading after posting record fourth-quarter sales Tuesday. Mexican fast-food chain Chipotle traded up 6% after beating sales and profit expectations.
Markets have been volatile since Fed officials said in mid-December that plans to withdraw stimulus would be accelerated to cool inflation that is at multi-decade highs.
European and other central banks also are looking at when to withdraw stimulus.
In energy markets, benchmark U.S. crude lost 24 cents to $89.12 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.96 the previous session to $89.36. Brent crude, the price basis for international oils, retreated 17 cents to $90.61 per barrel in London. It lost $1.91 on Tuesday to $90.78.
The dollar declined to 115.43 yen from Tuesday’s 115.54 yen. The euro advanced to $1.1438 from $1.1413.
