Dow Jones, Nasdaq Trades Steadily; S&P 500 Recovers Lost Ground As Boil in Oil Subsides

U.S. stocks increased on Wednesday after major corporations like United Airlines and Morgan Stanley released better-than-expected profit reports.

Due to plummeting energy and technology stocks, the S&P 500 gained 0.5 per cent to overcome a substantial chunk of the decline from its all-time high the previous day.

The S&P 500

The S&P 500 went on touch the day high level of 5,846.52 points after the index rang the opening bell at 5,816.58 points, very close to previous day’s closing level of 5,815.26 points.

After touching new record levels on the bourses in the previous trading day, the index cooled down and saw the entire trading session in positive territory except for the first hour of the session when the index slipped under the closing level of the previous day, marking the day low at 5,808.34 points.

The Nasdaq Composite

The Nasdaq composite is the tech heavy index, with companies including chip giant Nvidia, smartphone behemoth Apple, and other members of the famous magnificent seven stocks.

The index hit the opening bell at 18,333.29 points, showing the strength of the index gaining about 17.7 points on the previous day's closing level of 18,315.59 points.

The Nasdaq Composite went to touch the day high level of 18,383.11 points after constant tug of war between bullish and bearish trends, in which bulls eventually took control of index and pushed it to day-high level. The index closed at 18,367.08 points, gaining about 0.28 per cent amounting to 51.49 points.

Dow Jones Industrial Average

The Dow Jones Industrial Average saw increases of 0.79 per cent amounting to 337 points, pushing the index to 43,077.70 points, which now stands as the new record high level on the closing basis.

The bulls also took charge of Dow Jones, propelling the index to touch the day-high level of 43,100.84 points after ringing the opening at 42,706.49 points on the US bourse. The Dow jones shuttered the trading session at 43,077.70 points.

Fed starting to cut interest rate

In an effort to slow the economy sufficiently to contain high inflation, the Federal Reserve in the United States has already started lowering interest rates after maintaining them high for years.

As inflation finally appears to be approaching the Fed's 2 per cent target, the central bank is expanding its mandate to include maintaining a healthy economy.

The Fed may be able to achieve a perfect landing, which lowers inflation without triggering a recession that many had assumed was required, according to recent reports that the U.S. economy is still stronger than anticipated.