by Caroline Valetkevitch
NEW YORK (Reuters) – The New York Stock Exchange ended higher on Wednesday as encouraging forecasts from several companies, including semiconductor maker Micron, eased investor fears about the economy amid tremors of the banking sector which is always the subject of their attention.
The Dow Jones Industrial Average gained 1%, or 323.35 points, to 32,717.60 points.
The broader S&P-500 gained 56.54 points, or 1.42%, to 4,027.81 points.
The Nasdaq Composite advanced for its part by 210.16 points (1.79%) to 11,926.24 points.
Micron said Tuesday evening that it expects third-quarter revenue to decline in line with Wall Street expectations and was very optimistic in its 2025 forecast, citing growth in artificial intelligence-related sales. .
The title of the semiconductor manufacturer rose 7.2%, dragging in its wake the Nasdaq and the S&P-500.
Adding to the optimism, Lululemon Athletica said it expected a better-than-expected full-year profit, which caused its stock to jump 12.7%.
Both are good news for the economy, said King Lip, a strategist at BakerAvenue Wealth Management in San Francisco, noting the significance of Micron’s announcement.
“Micron is kind of a microcosm of the global economy, its chips powering so many different industries and sectors. If it’s optimistic about orders, that means the economy as a whole is doing well,” said- he commented.
The quarterly results season will begin in mid-April. In particular, it will be an opportunity for investors to assess the health of American banks, whose situation they are monitoring closely, with possible federal aid and the possible impact of such a decision on the monetary policy of the Federal Reserve ( fed).
The tremors in the banking sector, triggered by the failures this month of Silicon Valley Bank and Signature Bank, have generated volatility on Wall Street, with fears over the strength of the American economy, some also worrying that the Fed is pushing it into recession with its aggressive rate hike campaign.
* The reminder of the session in Europe: [.EUFR]
* TO BE FOLLOWED Thursday:
( Jean Terzian)
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