Most indexes on Wall Street saw a significant increase in early trading on Wednesday as companies released their earnings reports leading up to the Federal Reserve’s announcement on interest rates. Oil prices surged over $2 per barrel after the top political leader of Hamas was killed in an airstrike in Tehran.
In pre-market trading, Dow Jones Industrial Average futures rose by 0.2%, S&P 500 futures went up by 1.1%, and Nasdaq futures increased by 1.8%. Boeing’s shares also climbed 2% following a $1.4 billion second-quarter loss announcement, alongside the news of Robert Ortberg taking over as CEO.
Match Group, the owner of dating app Tinder, reported a revenue boost from its Hinge app, leading to a 10.5% rise in their shares. Microsoft shares fell by 3.4% after its cloud computing business revenue missed analysts’ expectations, while Starbucks saw a more than 4% increase despite weaker sales, as the company expressed optimism about future growth.
Investors were looking forward to decisions on interest rates from the Federal Reserve and the Bank of England. The Eurozone reported inflation rising to 2.6% in July, complicating decisions for the European Central Bank regarding interest rates to support economic recovery.
On the geopolitical front, an assassination in Iran sparked tensions in the region, potentially impacting oil supplies. Meanwhile, U.S. benchmark crude oil rose to $77.38 per barrel, and Brent crude reached $80.45.
In Asian markets, Japan’s Nikkei 225 index closed 1.5% higher after a rate hike by the central bank, which also led to a rally in the Japanese yen. The dollar weakened against the yen and euro. Stock markets in Hong Kong, China, Australia, and South Korea also saw gains amid various economic developments.
On Tuesday, the S&P 500, Dow, and Nasdaq had mixed results, with small-cap stocks outperforming. The Russell 2000 index continued its strong performance for the month with a 9.5% gain.
