US stocks rise following Fed meeting, start of Big Tech testimony
- US stocks rose Wednesday ahead of a key Federal Reserve policy meeting and congressional testimony from big tech companies including Facebook and Amazon.
- Starbucks and AMD shares climbed after earnings releases. Boeing and General Motors shares also ticked up after earnings reports.
- Later this week, Apple, Amazon, and Alphabet are set to report quarterly earnings.
- Read more on Business Insider.
US stocks rose Wednesday after the Federal Reserve signaled it will provide continued stimulus to the economy amid the pandemic recession.
The Federal Reserve held interest rates near zero on Wednesday, and reiterated that it would do whatever it takes to support the US economic recovery from the pandemic recession. On Tuesday, the central bank said it would extend its emergency lending programs through the end of the year.
Also on Wednesday, the CEOs of big tech companies including Apple, Amazon, Facebook, and Google parent Alphabet gave testimony before the House Antitrust Subcommittee addressing how they are handling antitrust challenges from regulators. Tech stocks, which have outperformed this year, held onto gains through the start of the hearing.
Here's where US indexes stood at 2:30 p.m. ET on Wednesday:
- S&P 500: 3,255.22, up 1.14%
- Dow Jones industrial average: 26,514.44, up 0.051% (135 points)
- Nasdaq composite: 10,545.20 up 1.4%
Earnings season continued. Shares of AMD surged Wednesday following a better-than-expected earnings release Tuesday. Starbucks rose after its CEO Kevin Johnson said that same-store sales for open locations turned positive in July, a sign of recovery from pandemic-related lockdowns.
General Motors and Boeing also ticked up after releasing quarterly results Wednesday before the opening bell. Shares of Tesla gained about 3% after Morgan Stanley boosted its price target for the second time this month.
Eastman Kodak surged more than 500% Wednesday after securing a $765 million government loan to produce drug ingredients in response to the coronavirus pandemic.
Investors will be awaiting further earnings report scheduled this week. Apple, Amazon, and Alphabet are set to report quarterly earnings on Thursday, giving further information about how the companies have fared amid the coronavirus pandemic, ensuing lockdowns, and a recent uptick in new COVID-19 cases.