- U.S. equities indexes rallied back from early losses on Wednesday, Feb. 1, as Fed Chair Jerome Powell said that the central bank's moves to tame inflation are working.
- The Nasdaq led the way with a gain of 2% as tech stocks moved higher, while the S&P 500 was up over 1% and the Dow eked out a slight advance.
- Stocks in the semiconductor sector moved higher after Advanced Micro Devices (AMD) exceeded profit expectations.
U.S. equities stormed back from deep losses triggered by the Fed's rate hike decision after Chair Jerome Powell said that the central bank's efforts to control inflation are working. The Dow had been down 500 points before finishing with a small gain. The S&P 500 was up 1%, and the Nasdaq added 2%.
It was a big day for semiconductor stocks after Advanced Micro Devices (AMD) posted better-than-expected profit and sales. It led the S&P 500 higher, while Intel (INTC) topped the Dow, and shares of others in the sector jumped. Shares of Old Dominion Freight Line (ODFL) hit an all-time high as the shipping company's earnings beat forecasts. Peloton Interactive (PTON) shares skyrocketed 26% after the struggling connected fitness firm reduced its losses, exceeded sales forecasts, and CEO Barry McCarthy said that an "epic comeback" for the firm is underway. Shares of Stryker (SYK) advanced on the medical device and equipment maker's quarterly results and outlook.
FedEx (FDX) shares rose after the package delivery giant announced that it was laying off 10% of its officers and directors in a cost-cutting move. Rivian Automotive (RIVN) reduced its workforce by 6% to save money, and its shares gained. Shares of Meta Platforms (META) rose ahead of its after-the-bell earnings report, and shares are taking off in extended trading.
Electronic Arts Game Delay
Westrock (WRK) shares plunged as the paper and packaging manufacturer missed both earnings and revenue estimates, and the company warned about the continuing impacts of inflation and softening macroeconomic conditions. Shares of Electronic Arts (EA) sank after the video game maker reported a lower-than-expected quarterly outlook and said that it was delaying the release of a new Star Wars game. Snap (SNAP) shares dipped as revenue at the parent of the Snapchat social media app was flat, and the company indicated that current quarter sales will drop as digital advertisers pull back on their spending. Amgen (AMGN) shares fell after the biotech firm's lower-than-anticipated current quarter guidance.
The Fed news sent the yield on the 10-year Treasury note tumbling, and the U.S. dollar lost ground to the euro, pound, and yen. Oil futures fell. Gold prices rose. Major cryptocurrencies reversed earlier losses and traded up.