Stocks opened higher on Wall Street on Wednesday, joining a rising tide in other global markets, after upbeat earnings — particularly from Intel and Godman sachs— fueled demand for riskier assets amid hopes that the United States economy could soon be growing again.
At 10:30 a.m., the Dow Jones industrial average was up 156.66 points, or 1.9 percent, at 8,516.15. The Standard & Poor’s 500-stock index was up 1.8 percent, and the technology-heavy Nasdaq composite index was up 2.5 percent.
In late-afternoon trading in Europe, the FTSE 100 index of leading British shares was up 2.1 percent, while Germany’s DAX rose 2.4 percent and the CAC-40 in France was up 2.3 percent, New York Times reports.
Meanwhile, the U.S. dollar fell to a one-low against major currencies on Wednesday, as blockbuster results from Intel and Goldman Sachs boosted confidence about corporate earnings and the economy.
Data showing the factories in New York state had nearly recovered from the recession in July also lifted spirits, undermining safe-haven demand for the dollar and pushing investors into higher-yielding currencies and equities, Reuters reports.
Better-than-expected earnings at Intel sent investors pouring back into the market Wednesday, sending stocks higher in morning trading.
Chipmaker Intel Corp.'s report after the market closed Tuesday lifted investor confidence because its sales figures suggest consumers are purchasing computers at a faster rate than anticipated, a potential sign the economy is recovering.
Consumer spending accounts for more than two-thirds of economic activity. Increased spending by consumers is widely seen as a key to an economic recovery, The Associated Press reports.