Tech Stocks Lead Market Rally and Yen Slips as Japan Allays Rate Hike Fears — Business | Business

Technology stocks are among the risers on Wall Street as markets continue to stabilize.

Salesforce.com (+3%), Amazon.com (+2.5%), Apple (+2.27%) and Microsoft (+2.2%) are among the top movers Dow Jones indus­trial average.

However, Airbnb is not invited to the rally.

Shares of Airbnb plunged 14% after the company reported signs of slowing demand from U.S. customers and missed analyst expec­ta­tions for second-quarter results last night.

Ding, ding, the opening bell rings at the New York Stock Exchange…

…and up, up, the shares!

The Dow Jones indus­trial average, which includes 30 large US companies, rose 0.6% to 39,231 points, an increase of 233 points.

The wider S&P 500 Index has gained more than 1%…. and the technology-oriented one Nasdaq increased by 1.5%.

The news that the Bank of Japan fears further interest rate hikes in the current climate is clearly pleasing to US investors.

Risk appetite reportedly improved a bit further today, largely thanks to the lack of “big bearish news.” Fawad Razaqzada, Market analyst at City index And FOREX.com

With the economic calendar also bleak, investors are assessing last week’s events more soberly, noting that there may have been a slight overre­action to the Bank of Japan’s stronger-than-expected monetary tight­ening last week, which triggered all the volatility, as investors were forced to exit carry trades.

That doesn’t mean we’re completely out of the woods yet. But there is at least some stabi­lization in the markets, which should allow some markets to realign with funda­mentals.

Walt Disney beat Wall Street expec­ta­tions with its latest financial results, despite declining revenue from its theme parks.

Disney reported an increase in revenue to $23.2 billion in its most recent quarter, up from $22.3 billion a year earlier.

This helped the company return to profitability with a pre-tax profit of $3.1 billion, compared to a loss of $100 million in the second quarter of 2023.

The enter­tainment division’s operating profit more than doubled. This was due in part to the success of the animated Pixar film “Inside Out 2,” which Disney said grossed more than $1.5 billion worldwide, making it the highest-grossing animated film of all time.

But revenue from Disney’s Experi­ences division, including theme parks, fell 3%.

Shares of Disney rose 0.3% in premarket trading.

Garry White, Chief investment commen­tator at Charles Stanleysays:

“Walt Disney’s third quarter results exceeded market expec­ta­tions and management increased full-year profit guidance. The combined streaming service was profitable — and that profitability is expected to improve due to price increases in the current quarter. Disney’s studio business performed well From the inside out 2 And Kingdom of the Planet of the Apes Both are high-grossing films.

These are not “Mickey Mouse” numbers, but markets are nervous right now and focused on the negative. Although the statement was optimistic, the news from the Magic Kingdom wasn’t as magical. The slowdown at iconic theme parks following a surge resulting from the Covid-19 pandemic is expected to continue over the next few quarters, with fourth-quarter revenue expected to decline year-on-year.

Time for a quick overview of the markets.

Stocks rallied on bourses in Asia-Pacific and across Europe after a senior policy­maker at the Bank of Japan sought to allay fears of further interest rate hikes.

Japan Nikkei continued its recovery from Monday’s slump, rising 1.2% while Hong Kong hanging Sing The index rose almost 1.4% and South Korea’s Kospi rose by 2.15%.

In Europe, the United Kingdom FTSE 100 The index is now up 90 points, or 1.13%, adding to earlier gains as traders antic­ipate a rally on Wall Street.

Germany DAX is 1.25% higher than in France CAC increased by 1.6%.

Stocks rose after Bank of Japan Deputy Governor Shinichi Uchida suggested the BoJ would not raise interest rates if markets were unstable.

Uchida told business leaders that volatility in domestic and foreign financial markets meant “it is necessary to maintain the current level of monetary easing for the time being.”

David Morrisonsenior market analyst at a fintech and financial services provider trading nation Uchida said the comments allayed fears that the BOJ would rush to raise interest rates further after last week’s larger-than-expected rate hike that preceded the recent stock market slide.

Morrison adds:

The speech helped weaken the yen and give back some of last month’s outsized gains. This should take some pressure off those still exposed to the yen carry trade, of which there are still a signif­icant number.

The US Dollar Index is firmer this morning, mainly thanks to the weaker Yen and also a rise in US bond yields. All European stock indexes were stronger in early trading. Tensions have eased somewhat and bargain hunters are looking for beaten-down stocks. But as with any earth­moving event, it makes sense to prepare for after­shocks.