Stock Market News Live Updates: Tech Stocks Lift Indexes As Earnings Roll In

Stocks rose on Wednesday as investors digested another round of excellent quarterly corporate earnings reports and looked forward to more.

The S&P 500 extended its gains from Tuesday's regular trading session. The Nasdaq excelled, with technology stocks rising as Treasury rates leveled out following a recent surge. The benchmark 10-year yield has dipped from its peak in November 2019.

Chipotle Mexican Grill's shares climbed after the fast-casual restaurant operator reported higher-than-expected quarterly profits and expanded margins amid worries about food price inflation and labor expenses. Lyft shares recovered from early losses after the business anticipated first-quarter revenue that fell short of estimates, as the Omicron wave impacted ridership at the start of the new year.

However, an otherwise excellent set of earnings reports has helped to support equities in recent weeks, with the S&P 500 on track for a third consecutive weekly rise. According to Bank of America's statement on Tuesday, aggregate S&P 500 earnings per share (EPS) are presently 6% higher than consensus forecasts for the most recent quarter. Earnings in the S&P 500 are expected to climb at a pace of well over 20% year on year.

"People are seeking profits right now in the markets because we know that earnings will be under pressure as margins tighten and the economy slows through 2022. That is why we are worried about increasing interest rates,... higher inflation prints, and a policy blunder this year," JPMorgan Asset Management's global market strategist, Jack Manley, said. "We'll be able to sidestep any of those possible difficulties if we increase our profits."

Nonetheless, investors continue to be concerned about inflation and the Federal Reserve's upcoming monetary policy measures. And on both fronts, new data is likely later this week, with the January Consumer Price Index (CPI) projected to indicate a record 39-year high rate of inflation.

"I don't think I'd say we're completely out of the woods and on this big bounce," Victoria Fernandez, Crossmark Global Investments' chief market strategist, commented. "There's simply too much volatility going on, and I believe it will continue."

"You have a market that is trying to assimilate so many elements: you have a pretty robust economy, but you have these inflation worries,... you have valuations that have been somewhat stretched, and you have doubts about what monetary policy will look like over the course of 2022," she said. "I would be cautious getting all in, assuming this is a rebound that would not return some."