Wall Street Closes Higher on Strong Data and Solid Earnings
Earnings season is nearing its end, with 379 S&P 500 companies having reported so far — 83% of them beating analyst expectations.
Quick overview
- U.S. stocks closed higher on Wednesday, driven by strong earnings reports and positive economic data.
- The S&P 500 rose 0.36%, the Nasdaq Composite gained 0.65%, and the Dow Jones Industrial Average climbed 0.48%.
- Despite concerns over inflated tech valuations, many investors view recent selloffs as healthy profit-taking rather than a market correction.
- Earnings season is nearing its end, with 83% of S&P 500 companies beating analyst expectations.
U.S. stocks closed higher on Wednesday, as investors regained confidence following a brief bout of nerves over inflated tech valuations.
Strong earnings reports and better-than-expected economic data fueled risk appetite, lifting all three major indexes.
The S&P 500 rose 0.36% to 6,796.31, the Nasdaq Composite gained 0.65% to 23,499.80, and the Dow Jones Industrial Average climbed 0.48% to 47,311.
Tech and artificial intelligence shares have driven markets to record highs in recent months, sparking debate over whether valuations have become overheated. Those concerns peaked Tuesday, when the S&P 500 and Nasdaq suffered their sharpest daily drops since October 10. Yet many investors viewed the selloff as a healthy bout of profit-taking rather than the start of a correction.
“Valuation concerns are legitimate, and a short-term 10–15% pullback would be reasonable,” said one Wall Street strategist. “But there’s still a buy-the-dip mentality — investors expect any retreat to be short-lived.”
Fresh data helped bolster sentiment. The ADP National Employment Report showed private payrolls rebounded in October with 42,000 new jobs, while a separate survey revealed continued expansion in the services sector despite rising production costs and some job losses.
Earnings season is nearing its end, with 379 S&P 500 companies having reported so far — 83% of them beating analyst expectations. McDonald’s shares climbed after the fast-food giant posted stronger-than-expected same-store sales, driven by budget-friendly meal deals that kept customers coming back.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save