US stocks rise as investors weigh growth concerns against strong corporate earnings
Stockswere up Wednesday following a rebound rally in the previous session.
- Cola-Cola and Verizon aided a rise in the
Dow Jones Industrial Average.
- Bitcoin and oil prices advanced.
US stocks edged higher Wednesday, with blue-chip stocks advancing on the back of earnings reports that outstripped Wall Street's targets, while investors confronted questions about global economic recovery as COVID-19 infections rise.
Here's where US indexes stood at 9:30 a.m. on Wednesday:
- S&P 500: 4,339.88, up 0.4%
- Dow Jones Industrial Average: 34,694.34, up 0.53% (182.35 points)
- Nasdaq Composite: 14,527.76, up 0.22%
COVID cases have been increasing on the spread of the Delta strain of the virus and could fuel worries about stagflation, or the combination of slowing economic growth and inflation.
"If the virus begins to spread rapidly again, that would curtail economic growth and prolong the inflationary supply chain disruptions that have affected so many industries including semiconductors and housing," said Nancy Davis, portfolio manager of the Quadratic Interest Rate Volatility and Inflation Hedge Exchange-Traded Fund, or IVOL, in a note.
"Stagflation is a 60/40 portfolio's worst nightmare, as stocks and bonds tend to fall together during stagflationary environments. Lower economic growth punishes stocks and inflation robs bond investors of their returns," she said.
Gold slipped by 0.5%, to $1,801.17 per ounce. Long-dated US Treasury yields edged up, with the 10-year yield at 1.23%.
Bitcoin jumped 6%, to $31,586.92.
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