Stocks have been rebounding since Monday and Tuesday when shares experienced a roller-coaster trading session each day. On Tuesday, stocks recovered some of their gains after losing as much as 818 points during the session and even coming up 226 points higher at one point. That was after Monday’s volatile session when the Dow lost 1,115 points but then recovered and posted a gain, albeit a small one.
On Tuesday, the Nasdaq Composite and S&P 500 lost 2.3 percent and 1.2 percent, respectively. But the closures were higher than the lows experienced earlier during trading on Tuesday.
After Microsoft posted its earnings report, other technology chairs added gains, including Nvidia, Amazon, Apple, and Netflix. Tesla added 4.7 percent to its share prices. The electric vehicle maker is scheduled to release its own earnings report by the close of trading.
The top gainer in the S&P 500, Corning, jumped 16 percent after the company posted that its revenue and quarterly earnings had surpassed the expectations of Wall Street analysts.
But, not everyone saw a rise. Boeing shares fell by 1.6 percent, even after the aircraft manufacturer had reported a positive cash flow.
On Wednesday, stocks rebounded after Microsoft posted a robust quarterly report and while investors waited for news from a Federal Reserve meeting. By midday on Wednesday, the three major indexes were seeing green. The Dow had climbed over 500 points to 1.4 percent higher. Meanwhile, the Nasdaq gained 2.6 percent, and the S&P added 2 percent.
But after Jerome Powell, Federal Reserve Chairman, said the bank had lots of room to raise rates before it could negatively impact the economy, volatility ensued again. The Dow fell by 330 points, while the Nasdaq slipped 0.8 percent, and the S&P 500 fell by 0.9 percent.
Regarding rate hikes, Charles Schwab strategist Liz Ann Sonders had written earlier, “It’s premature to assume the latest volatility and weakness, in and of itself, will cause the Fed to blink (e.g., adjust the narrative.)”
Treasury yields have risen since the beginning of the year, signaling a tighter policy from the Federal Reserve. As of Wednesday, the 10-year yield was about 1.77 percent. As January winds down, the three major indexes are down.