US stocks rose on Wednesday, with tech giants leading the way, amid a surprise drop in core CPI inflation and positive bank earnings. The Nasdaq composite reclaimed its 50-day moving average, while the S&P 500 and Dow Jones futures edged above key levels.
Taiwan Semiconductor’s earnings beat fourth-quarter views, with revenue boosted by AI chip demand, sending its stock up 2.7% on Wednesday. Nvidia’s stock rose slightly before the open, near the 50-day line, after also beating estimates.
UnitedHealth’s earnings fell short of expectations, with shares slipping as the company guided lower. Bank of America reported better-than-expected results, while Morgan Stanley comfortably beat views.
The rally was fueled by a surprise drop in core CPI inflation, which sparked hopes for future rate cuts. The 10-year Treasury yield rose to 4.68%, while US crude oil fell 1%. ETFs saw significant gains across various sectors, including tech, metals and energy.
Investors are advised to keep adding exposure to the market if it continues to act well, but be cautious if the Nasdaq fails to hold its 50-day line. Having a watchlist and exit strategy in place is essential for navigating the current market conditions.
Source: https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-unitedhealth-nvidia-chipmaker-taiwan-semiconductor