US stocks gain as market sees less risk of 'hard landing'
Sign up now: Get ST's newsletters delivered to your inbox
Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: AFP
NEW YORK - Wall Street stocks shrugged off early weakness on Wednesday, finishing with gains after a surprisingly strong January retail sales report.
Sales bounced by 3 per cent last month to US$697 billion after two months of contraction, following strong gains in auto sales, department store sales and other categories.
Analysts had expected a rise of just 1.7 per cent.
The report is the latest to suggest strength in the US economy – something that has sometimes rattled equity investors nervous over potential further Federal Reserve interest rate increases.
That dynamic has sometimes led to talk that “good news is bad news.”
“Markets seem to be changing their tune about ‘good news being good news,’“ said Mr Art Hogan, an analyst at B. Riley Financial, who pointed to greater optimism that the US economy will avoid a sharp downturn, a so-called “hard landing.”
The Dow Jones Industrial Average added 0.1 per cent at 34,128.05.
The broad-based S&P 500 advanced 0.3 per cent to 4,147.60, while the tech-rich Nasdaq Composite Index jumped 0.9 per cent to 12,070.59.
Among individual companies, Airbnb surged 13.4 per cent after reporting better-than-expected profits as it characterised travel demand as “strong.”
Devon Energy slumped more than 10 per cent as its earnings lagged estimates.
Analysts also pointed to upset at the energy producer’s capital spending plan, which exceeded expectations. AFP
