Stocks generally rose after a period of decline fueled by inflation concerns, with attractive valuations and strong corporate earnings drawing in investors. The S&P 500 ended a three-day losing streak, while Dell Technologies Inc. saw a significant 16% jump following a positive outlook. A slowdown in the recent oil rally, which had previously unsettled global markets, contributed to improved sentiment, though US crude prices remained above $90 a barrel. Treasury yields experienced a slight dip after recently surging to multi-year highs.
In after-hours trading, Broadcom Inc.'s outlook disappointed investors, while Snowflake Inc. surged after increasing its revenue projection and highlighting the rapid adoption of its AI-assisted coding tool. Hewlett Packard Enterprise Co. also raised its sales forecast. Wall Street experienced a return to relative calm after volatility sparked by Middle East conflict had raised fears that higher energy costs could prompt the Federal Reserve to increase interest rates. President Donald Trump indicated that strikes on Iran would likely be brief and reaffirmed US control over the Strait of Hormuz.
Angelo Kourkafas, an analyst at Edward Jones, commented that "Stocks are finding some footing after a difficult start to September," adding that "Underlying fundamentals remain constructive." He noted that seasonal headwinds, while present, are not strong enough to derail the broader market uptrend. New York Fed President John Williams stated that there is evidence of continued inflation easing as the impact of tariffs diminishes and higher energy prices are not broadly affecting other services.
At the close of trading, the S&P 500 rose 0.5%, the Nasdaq 100 gained 0.2%, and the Dow Jones Industrial Average increased by 0.6%. The MSCI World Index also saw a modest rise of 0.2%. In currency markets, the Bloomberg Dollar Spot Index fell 0.2%, the euro remained largely unchanged at $1.1590, the British pound declined 0.2% to $1.3491, and the Japanese yen strengthened by 0.9% to 158.68 per dollar.
Regarding commodities, West Texas Intermediate crude increased by 0.1% to $90.33 a barrel, while spot gold rose 1.4% to $4,388.92 an ounce. The yield on 10-year US Treasuries decreased by two basis points to 4.78%, while Germany's 10-year yield advanced three basis points to 3.38%, and Britain's 10-year yield rose one basis point to 5.23%.
