Stock Market News Live Updates: Stocks Rise For A Fourth Straight Session: S&P 500 Gains 0.9%, Dow Adds 224 Points, Or 0.6%

Stock Market News Live Updates: Stocks Rise For A Fourth Straight Session: S&P 500 Gains 0.9%, Dow Adds 224 Points, Or 0.6%

The stock market rallied during Wednesday's bumpy session as investors digested a new set of earnings reports from several key index companies and attempted to shake off the effects of January's instability. The S&P 500, Dow, and Nasdaq all rose right after noon in New York.

A string of better-than-expected business profits contributed to counterbalance some more troubling indicators of an Omicron-induced downturn in markets earlier this year. ADP stated Wednesday that private companies in the United States eliminated 301,000 job positions in January, the first reduction since December 2020.

Alphabet equities soared as the internet behemoth surpassed quarterly sales and earnings forecasts and revealed a 20-for-1 stock split. The decision may make the company, which is presently trading at more than $3,000 a share, more affordable and appealing to new investors. After Alphabet's earnings reports, equities of other commercial online media tech giants such as Meta and Pinterest rose in late trade.

AMD shares also jumped as earnings reports were above expectations in almost every important indicator, implying that the company was gaining market share from microchip competition while managing chronic component supply problems. Meanwhile, Starbucks shares slumped as quarterly earnings fell short of projections, and PayPal equities dipped after presenting guidance that ultimately failed on Wall Street's projections.

Following a disappointing January, this week's quarterly data have given a new stimulus to the market. Other significant firms' numbers, such as Meta, Spotify, and Qualcomm, are due out on Wednesday. The S&P 500 finished Tuesday's normal trading day better for the third consecutive session, opening February on a positive note after having its worst month since March 2020 in January. On Tuesday, the Nasdaq Composite climbed 0.8%, while the Dow increased 0.8%.

"We had a really difficult January. I believe we're having some short covering and rebounding off the bottom here. I don't believe markets have stabilized yet," CAPTRUST's chief investment officer, Michael Vogelzang, said.

"It is unclear what the Federal Reserve will do. We don't know where inflation will go before the end of the year," he continued. "We have Russia looming over the Ukrainian border. This has the tendency to push up crude oil prices even more than they are now, which would, as a consequence, weaken the economy and raise inflation further. As a result, I believe the market is quite disturbed as it seeks bottoms."